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Single Member LLC Operating Agreement

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Single Member LLC Operating Agreement basics

Even if you operate a single member LLC, your business can benefit from an Operating Agreement. Single Member LLC Operating Agreements help you communicate how your business will operate, how it is separate from your personal finances, and how you plan to pay yourself. Potential investors will also want to see your Operating Agreement to help them decide if they want to invest.

How do I write an Operating Agreement for a Single Member LLC?

Making a Single Member LLC Operating Agreement online is simple. Just answer a few questions, and Rocket Lawyer will build your document for you. Consider these questions beforehand to make the process speedier:

  • Where is the LLC being registered?
  • When will this operating agreement take effect?
  • What is the purpose of this LLC?
  • When will the LLCs fiscal year end?

If you don't have all of the details you need, you can skip questions and save your document for later.

Does a Single Member LLC need an Operating Agreement?

Single Member LLC Operating Agreements are used to define the structure of your business, show the financial separation between you and your business, illustrate to investors how your business operates, and protect your business from default state laws. Even if you are the only member, you are still running a business and it will be useful if you map out how your business will operate.

Is an LLC required to have an Operating Agreement?

Depending on your state, an Operating Agreement may be required.

What if an LLC has no Operating Agreement?

Even if you are not legally required to have an Operating Agreement in your state, one major reason for having a Single Member LLC Operating Agreement is to dictate what should occur if the company needs to dissolve. In this case, you'll need to define how the company should dissolve and what is to happen with liabilities and assets should you die or become unable to run your business.

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Sample Single Member LLC Operating Agreement

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