A Colorado Multi-Member LLC Operating Agreement validates an understanding of essential facts concerning establishing an LLC and details how it will operate. In cases where there is more than one individual with an ownership interest in a business, securing a contract to outline each member’s stake and investment in the company is crucial. Various other portions of the document seek to incorporate distribution procedures, voting rights, and assigned duties moving forward. The state of Colorado does not obligate the creation of an operating agreement to officially form an LLC, but it is advised to prepare one to assure accord among the owning parties.