What type of agreement allows members of a limited liability company to execute a lease or other binding document?

The operating agreement of a limited liability company (LLC) is a crucial document that outlines the internal management structure and operating procedures of the LLC. This agreement typically details the rights and responsibilities of the members, the management of the business, and the processes for making decisions, including the authority to bind the company in contracts such as leases.

When members of an LLC wish to execute a lease or any other binding document, the operating agreement provides the legal framework that grants them the authority to do so on behalf of the LLC. It specifies who has the power to act for the LLC in such matters, ensuring that all actions taken within the scope of the agreement are valid and enforceable.

In contrast, a management agreement primarily relates to the roles and responsibilities of managers being appointed to run the daily operations of the LLC rather than the authority of members to sign documents. A partnership agreement governs partnerships and is not applicable for LLCs, and a shareholder agreement pertains to corporations where shareholders manage their collective rights, which is not relevant in the context of an LLC. Thus, the operating agreement is distinctly the correct answer for enabling members to execute leases and other binding documents.