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Single Member LLC Operating Agreement

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Single Member LLC Operating Agreement Basics

Forming a single member LLC is great way to provide added flexibility and credibility to your business; however, you'll need a Single Member LLC Operating Agreement to get the most out of your new business entity. As with any other size LLC, a Single Member LLC Operating Agreement covers the day to day operating policies of your LLC. This ranges from dividing shares and responsibilities of LLC members, procedures to follow for adding or removing future members, to how much you will be paid by the business. While member shares in a single member LLC might not be an immediate concern, it can be prudent to plan ahead.

Use the Single Member LLC Operating Agreement document if:

  • You're ready to form a Single Member LLC and you want to define its business terms.
  • You've already formed a Single Member LLC but don't yet have an operating agreement.

Aside from laying out the structure of your business a Single Member LLC Operating Agreement can provide some crucial benefits for single member companies. In particular, having a solid operating agreement grants more credibility that your single member LLC is its own entity, rather than a sole-proprietorship hiding behind a different name. Having this key distinction can help you both attract potential investors and protect your limited liability status—which is much more fragile for single member LLCs than in multi-member variants. In addition, if you are forming your LLC in California, Delaware, Maine, Missouri, or New York you are required by state law to create an operating agreement. Requirements aside, however, a Single Member LLC Operating Agreement is an important piece to customizing and running your new company.


Sample Single Member LLC Operating Agreement

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Single Member LLC Operating Agreement Basics

Aside from laying out the structure of your business a Single Member LLC Operating Agreement can provide some crucial benefits for single member companies. In particular, having a solid operating agreement grants more credibility that your single member LLC is its own entity, rather than a sole-proprietorship hiding behind a different name. Having this key distinction can help you both attract potential investors and protect your limited liability status—which is much more fragile for single member LLCs than in multi-member variants. In addition, if you are forming your LLC in California, Delaware, Maine, Missouri, or New York you are required by state law to create an operating agreement. Requirements aside, however, a Single Member LLC Operating Agreement is an important piece to customizing and running your new company.

Use the Single Member LLC Operating Agreement document if:
  • You're ready to form a Single Member LLC and you want to define its business terms.
  • You've already formed a Single Member LLC but don't yet have an operating agreement.
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