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Delaware · Operating Agreement Guide

Delaware LLC operating agreement: the contract the whole act defers to.

Delaware never requires the document and never files it, and then builds its entire LLC Act around it: the LLC agreement, written, oral, or implied, is the instrument the statute defers to on nearly every question, that is the famous freedom of contract. And Section 18-703 adds the part sophisticated owners come to Delaware for: the charging order is a creditor’s exclusive remedy against a member’s interest, foreclosure off the table, whether the company has one member or fifty. The catch in all of it: the act defers to what you drafted. Draft nothing, and the defaults run the company you chose Delaware to control.

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The agreement, decoded

Four facts cover the whole system

1 · What it actually is

Delaware’s term is the limited liability company agreement: the members’ contract about the company’s affairs, recognized in written, oral, or implied form. It is private, never filed with the Division of Corporations, and under Delaware’s freedom-of-contract policy it displaces the act’s defaults almost everywhere. What we draft for you →

2 · Is it required in Delaware

No filing, no mandate, and yet every Delaware LLC effectively has one: the act’s definition sweeps in oral and implied agreements. The choice is never agreement or no agreement, it is drafted terms or reconstructed ones.

3 · What it must decide

Ownership and votes, how money comes out, exits, deadlock, and, because this is Delaware, everything else you want to customize: fiduciary-duty tailoring, classes of interests, manager structures. The act was built to enforce what you write. A written agreement costs nothing to adopt, because the state files nothing: there is no state fee at all. When we draft yours, the total is our drafting service fee plus a transaction fee, one-time or included on the plans, itemized on the pricing page before you pay, and the free template builders in our forms library are open to everyone, before signup or after.

4 · The 18-703 shield

Section 18-703 makes the charging order the exclusive remedy for a member’s creditor: no foreclosure, no reaching LLC property, the creditor waits for distributions, and the statute says so whether the LLC has one member or more. That is the anti-Olmstead position, and the agreement is where the structure behind it gets documented.

✓ Accuracy verified against the state’s LLC act · checked 2026

What the agreement decides

Five fights, settled while everyone is friends

OWNERSHIP & VOTESWho owns what percentage and whose vote carries: the clause every later dispute reads first, and the one handshake deals remember differently.
MONEY OUTDistributions, salaries, and draws: when cash leaves and in what order. Without terms, the act’s defaults decide, and they were not written for your situation.
EXITS & TRANSFERSA member leaves, dies, divorces, or sells: the agreement says what happens to the interest. Silence here is how strangers and ex-spouses become business partners.
DEADLOCK & DISSOLUTIONFifty-fifty and disagreeing: the tiebreaker clause is worth more than every other page. Without one, deadlock ends companies that were otherwise working.
ASSET PROTECTIONDelaware’s Section 18-703: the charging order is a creditor’s exclusive remedy, foreclosure unavailable, single-member included, the creditor waits on distributions the agreement controls. The strongest statutory shield in the country, and the agreement is its paperwork.

Delaware files nothing and mandates nothing, then enforces whatever LLC agreement exists, written, oral, or implied, with a statute built on freedom of contract. The agreement decides ownership, money, exits, and deadlock, and documents the structure behind Section 18-703’s exclusive-remedy charging-order shield, single-member LLCs included.

The agreement is step one

Where you stand decides what you do next

You are forming the LLC now

Delaware rewards drafting like no other state: the act enforces what you write. Form the Delaware LLC and the agreement together, and put the annual franchise-tax calendar on autopilot while you are at it.

You came for the asset protection

Then the agreement is not optional paperwork, it is the protection’s documentation: distribution control, transfer restrictions, the structure a court reads alongside 18-703. We draft it with the shield in mind, not as an afterthought.

You have investors or classes coming

Delaware’s flexibility, classes, series, tailored duties, exists only in the agreement’s text. A template cannot hold a preferred class. This is the state where custom drafting pays for itself fastest.

The contract Delaware enforces

The defaults ran the company, in the state built for drafting

A founder suited up for the signing
We formed in Delaware because our lawyer said it was the gold standard, then never signed an LLC agreement, which I now understand is like buying a piano and never opening the lid. When our creditor fight came, 18-703 held, the charging order was all they got. But inside the company, every governance question fell to defaults we had never read. Delaware enforces what you write. We had written nothing.
Holding-company founder, Wilmington-formedThe agreement now runs to forty pages, on purpose
Freedom of contract usedShield documentedDefaults displaced

Representative composite drawn from customer outcomes.

BosAI drafts before the fights start

Ask what the agreement means for you

BosAIYour workspace · Delaware records connected

Does Delaware require an operating agreement for my LLC?

No, and Delaware calls it the LLC agreement. Nothing is filed and nothing is mandated, but the act recognizes written, oral, and implied agreements, so some version of one already governs you. The whole point of Delaware is that the statute defers to what you draft, freedom of contract. Drafting nothing wastes the state you picked. The written one is where the advantages live.

Is a single-member Delaware LLC really protected from creditors?

Delaware’s statute is the strongest wording in the country: Section 18-703 makes the charging order the exclusive remedy and says so whether the LLC has one member or more than one, no foreclosure, creditor waits on distributions. Honest caveats: your home state’s courts and bankruptcy can complicate the picture. The agreement documents the structure that gives the shield its best chance.

Can I just use a free template?

In Delaware, least of anywhere: the state’s entire value is enforcing custom terms a template does not contain. The free single-member builder in our forms library covers a simple start, drafted live in the browser. The moment you want classes, tailored duties, or the 18-703 structure documented properly, that is drafting work, and it is exactly what we do.
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Frequently asked

Delaware Operating Agreement questions.

Is an operating agreement required for a Delaware LLC?

No: Delaware neither requires nor files it, and calls it the limited liability company agreement. The act recognizes written, oral, and implied agreements, so an LLC without a written one is still governed by some version. We draft the written one as part of operating agreement service.

Does a Delaware LLC agreement get filed with the state?

Never: it is a private contract kept with company records. The Division of Corporations has no copy and no role, franchise tax gets paid without anyone reading your agreement. What matters is that it exists, is signed, and can be produced when a bank, an investor, or a court asks.

What happens if my Delaware LLC has no written agreement?

The act’s default rules govern, plus whatever oral or implied agreement can be proven, in the one state whose statute was engineered to enforce custom drafting. You paid for freedom of contract and used none of it. Every governance question gets a default answer written for nobody in particular.

Does Delaware protect single-member LLCs from creditors?

Delaware’s Section 18-703 makes the charging order a creditor’s exclusive remedy, forecloses foreclosure, and applies its terms whether the LLC has one member or more, the strongest statutory formulation in the country. Courts outside Delaware and bankruptcy can complicate outcomes, which is why the agreement and clean formalities still matter.

Do single-member Delaware LLCs need an LLC agreement?

Yes, doubly: banks and lenders demand the document, and the 18-703 shield is worth documenting properly, distribution control, transfer restrictions, the entity’s separateness. A single-member Delaware agreement is short, but its clauses are load-bearing. We draft with the shield in mind.

What should a Delaware LLC agreement include?

Everything you want enforced: ownership and contributions, management and voting, distributions, transfer and exit rules, deadlock, dissolution, and Delaware’s specialties, tailored fiduciary duties, classes of interests, series if you use them. The act defers to your text; the text should deserve it.

Can File.Business draft my Delaware LLC agreement?

Yes. The free builders in our forms library draft single-member, multi-member, and manager-managed agreements live in the browser, and our drafting service builds the custom version: your ownership, management, exits, and shield-aware structure, reviewed before signing and stored in your document vault. A written agreement costs nothing to adopt, because the state files nothing: there is no state fee at all. When we draft yours, the total is our drafting service fee plus a transaction fee, one-time or included on the plans, itemized on the pricing page before you pay, and the free template builders in our forms library are open to everyone, before signup or after.

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