The Alabama operating agreement as defined under §10A-5A-1.02(k) is a form for either a single or multi-membered limited liability company (LLC) that allows the member(s) to establish how much each party owns in the entity in addition to any other terms and conditions pertinent to the operation of the company. Adopting an operating agreement is not required by the state but is highly recommended as the state does not record the ownership of an LLC, rather, it is listed and agreed to in the operating agreement and signed by all members. In addition, manager(s), registered agent, capital contribution(s), and any other legal or financial information that should be entered as part of the company. We have provided a free agreement template, available for download in PDF and MS Word formats.