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Texas · Operating Agreement Guide

Texas LLC operating agreement: here, it’s called the company agreement.

Texas never requires the document and never files it, and it does not even call it an operating agreement: the Business Organizations Code, section 101.052, names it the company agreement and defines it as any agreement, written, implied, or oral, of the members about the business. That breadth is the trap: skip the written one and Texas may still find an agreement in your conduct, while the BOC’s default rules govern everything you never discussed, in a community-property state where a member’s spouse is quietly part of the math.

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The agreement, decoded

Four facts cover the whole system

1 · What it actually is

The contract governing relations among members, managers, officers, assignees, and the company itself, the BOC’s own scope list, under the Texas name: company agreement. It is a private document, never filed with the Secretary of State, and it controls over the code’s defaults on nearly everything. What we draft for you →

2 · Is it required in Texas

No: you can form and run a Texas LLC without ever signing one. But section 101.052 recognizes written, implied, and oral company agreements, so a company without a written one may already be bound by the version a court assembles later from conduct, and Texas courts make oral terms brutally hard to prove.

3 · What it must decide

Ownership and votes, how money comes out, what happens when a member leaves, dies, or divorces, and who breaks a deadlock. Without answers, the BOC’s defaults answer for you. 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 community-property angle

Texas is a community-property state: a married member’s membership interest can carry a community component, which makes death and divorce clauses load-bearing. The company agreement is where you decide, in advance, what a spouse’s interest does and does not reach: management rights, buyouts, valuation.

✓ 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 BOC’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.
COMMUNITY PROPERTYA married member’s interest can carry a community-property component in Texas. Without transfer, valuation, and buyout clauses, a divorce decree can seat an unintended party at the table. The agreement decides this in advance; the defaults do not.

Texas requires nothing and files nothing: the company agreement of section 101.052 is a private contract that can be written, implied, or oral. The written one decides ownership, money, exits, deadlock, and what a spouse’s community interest reaches; without it, BOC defaults and reconstructed conduct decide instead.

The agreement is step one

Where you stand decides what you do next

You are forming the LLC now

Draft the company agreement with the formation, not after it. Form the Texas LLC and the agreement together, and remember the franchise-tax side has its own calendar either way.

You have been running on a handshake

Then under 101.052 you may already have an implied company agreement, reconstructed from conduct if it ever reaches a courtroom, where oral terms go to die. Writing it down converts memory into enforceable text while everyone still agrees.

You are married, or your partner is

Community property makes the exit clauses the whole ballgame: valuation method, buyout trigger, what a divorce decree can and cannot move. We draft those terms explicitly, before they are needed, which is the only time they are cheap.

The agreement nobody wrote

The handshake held for years, until the decree arrived

The company agreement laid out for signature, pen ready
Two of us built the Houston shop on a handshake, fifty-fifty, never wrote a word. Then my partner’s divorce hit, and suddenly three lawyers were arguing about what half of his half meant, with no buyout clause, no valuation method, nothing in writing. The court worked from the code’s defaults and our bank records. The agreement we never wrote cost more than every contract we ever signed.
Shop co-owner, HoustonSigned a real company agreement the month it ended
Terms in writingBuyout definedDecree-proof

Representative composite drawn from customer outcomes.

BosAI drafts before the fights start

Ask what the agreement means for you

BosAIYour workspace · Texas records connected

Does Texas require an operating agreement for my LLC?

No, and Texas does not even call it that: section 101.052 of the BOC names it the company agreement and recognizes written, implied, and oral versions. Nothing forces you to sign one. But without a written one, the BOC’s defaults govern and any dispute starts with proving what was orally agreed, which Texas courts make very hard. The written one is how you control the terms.

Can I just use a free template?

For a single-member LLC with simple plans, often yes, and the free template builders in our forms library draft it live in the browser, no signup needed. Where templates fail is everything Texan and specific: community-property planning, unequal contributions, manager structures, buyout formulas. Template for the simple start, custom drafting when real money, a marriage, or a second member arrives.

Does the company agreement affect the franchise tax?

Not directly, the Comptroller’s franchise-tax and report duties run on their own calendar whether or not you have an agreement. What the agreement does decide is who inside the company owns that duty, how costs are shared, and what happens if someone lets a filing slip. Different documents, same company; I can map both.
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Frequently asked

Texas Operating Agreement questions.

Is an operating agreement required for a Texas LLC?

No. Texas law does not require one, and it uses a different name: the company agreement, defined in BOC section 101.052 as any agreement, written, implied, or oral, of the members. A company without a written one can still be bound by an unwritten version. We draft the written one as part of operating agreement service.

Does a Texas company agreement get filed with the state?

Never: it is a private contract kept with your company records, not a filing. The Secretary of State has no copy and no role. What matters is that it exists, is signed, and can be produced when a bank, a title company, an investor, or a court asks, which is why ours live in your workspace document vault.

What happens if my Texas LLC has no company agreement?

The BOC’s default rules govern every internal question, ownership, money, exits, deadlock, and any unwritten understandings become litigation exhibits instead of terms. In a community-property state that also means death and divorce play out with no buyout or valuation clauses. Writing the agreement is how you keep the pen.

Why does Texas call it a company agreement?

The Business Organizations Code chose the term when it consolidated Texas entity law, but it is the same instrument other states call an operating agreement: the members’ contract about the business. Section 101.052 gives it sweeping scope, it governs relations among members, managers, officers, assignees, and the company itself.

Do single-member Texas LLCs need a company agreement?

Yes: banks and lenders demand one before opening accounts or closing loans, and the agreement is core evidence that the company is an entity distinct from its owner. For married single members, it is also where community-property expectations get written down. We draft single-member agreements with exactly that in mind.

What should a Texas company agreement include?

Ownership percentages and capital contributions, management and voting, distributions, transfer and exit rules including death and divorce with valuation and buyout mechanics, deadlock resolution, and dissolution terms. The clauses you skip are the fights you have later. We draft against a Texas-specific checklist, not a generic one.

Can File.Business draft my Texas company 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 community-property-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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