Is an Oral LLC Agreement Valid?
Unfortunately, the LLC laws of most states do validate oral llc agreements for a limited liability company. So, technically, an oral LLC agreement is valid.
There are some limitations under general contract law. For example, there is the concept of the statute of frauds which requires that certain agreements be in writing. A recent Delaware court case involved an oral LLC agreement and held it invalid not under the LLC laws but under the statute of frauds/contract rules.
Practically and legally speaking, an oral agreement governing the relationship between LLC members and the operational requirements of a business is just a recipe … Continue Reading


