When forming a limited liability company (LLC), it is essential to have a written agreement that outlines the rights and responsibilities of each member. This document is commonly known as the LLC Operating Agreement. In the state of Delaware, the agreement is referred to as the Delaware LLC Agreement.

The Delaware LLC Agreement is a legally binding document that outlines the operational and financial arrangement of the LLC. This agreement helps in defining how the company will operate, how decisions will be made, and how profits and losses will be shared among members.

The agreement typically covers the following:

1. Ownership percentage: This section outlines the percentage ownership of each member in the LLC. It is essential to clarify each member`s stake in the business to avoid disputes in the future.

2. Management structure: The agreement outlines the management structure of the LLC, whether it will be managed by members or non-members. It defines the roles and responsibilities of each member in the management of the business.

3. Capital contribution: This section outlines the capital contribution of each member and how the contributions will be used to run the business.

4. Profit and Loss allocation: This section outlines the percentage of profits and losses that each member is responsible for. It is essential to clarify how profits and losses will be divided among members to avoid conflicts and misunderstandings.

5. Dissolution of the LLC: The agreement also outlines the process of dissolving the LLC. It may include provisions for how assets will be divided, how debts will be paid off, and how any remaining profits will be distributed among members.

In conclusion, the Delaware LLC Agreement is an essential document that outlines the operational and financial arrangement of an LLC. It helps in defining the relationship between members and promotes better understanding, cooperation, and trust among them. As such, it is crucial to have a well-drafted Delaware LLC Agreement that covers all relevant aspects of the LLC to avoid disputes and conflicts in the future.