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The Single Member Managed LLC Operating Agreement is essential for entrepreneurs and business owners establishing a single-member LLC in the United States. This document is used when an individual wants to form an LLC while maintaining sole ownership and management control. It serves multiple crucial purposes: establishing the LLC's governance structure, maintaining the separation between personal and business assets (crucial for liability protection), and providing clear operational guidelines. The agreement must comply with state-specific LLC laws where the company is formed and federal regulations, particularly regarding tax treatment. While some states don't legally require an operating agreement for single-member LLCs, having one is considered best practice for maintaining liability protection and providing clear documentation of the company's structure and operations. The document typically includes detailed provisions about capital contributions, distributions, management responsibilities, succession planning, and dissolution procedures.
