Document background
The Single Member LLC Operating Agreement is a crucial document for entrepreneurs and business owners operating as single-member LLCs in the United States. This agreement serves multiple essential purposes: it establishes the LLC's governance structure, protects the owner's limited liability status, and provides clear guidelines for business operations. While not all states legally require single-member LLCs to have operating agreements, having one is strongly recommended as it helps maintain the separation between personal and business assets, provides clarity in business operations, and can be required by banks, lenders, or other business partners. The agreement typically includes provisions for capital contributions, profit distributions, tax treatment, succession planning, and dissolution procedures, all while complying with relevant state LLC laws and federal regulations.
