A Single-Member Operating Agreement is a legal document that outlines the management structure and operational guidelines for a single-member limited liability company (LLC). This agreement serves as a blueprint for the business, detailing the owner's rights, responsibilities, and procedures. Establishing this agreement can help protect personal assets and ensure smooth business operations.
When starting a single-member limited liability company (LLC), having a solid operating agreement is essential. This document serves as the backbone of your business, outlining how it will operate and providing guidelines for decision-making. The Single-Member Operating Agreement form includes key components such as the name of the LLC, the purpose of the business, and the owner's rights and responsibilities. It also addresses how profits and losses will be allocated, ensuring clarity in financial matters. Importantly, this agreement helps protect your personal assets by reinforcing the limited liability status of your LLC. Additionally, it can establish rules for transferring ownership or dissolving the company, should the need arise. By having this agreement in place, you not only comply with state requirements but also create a clear framework for your business operations.
Single-Member Operating Agreement
This Single-Member Operating Agreement ("Agreement") is effective as of this ____ day of __________, 20__, and is entered into by and between:
Member Name: ______________________________________
Business Name: ______________________________________
Principal Office: ______________________________________
State of Formation: _____________________ (if state-specific laws apply)
Article I: Formation
The Member has formed a single-member limited liability company, referred to as the "Company," under the laws of the State of _____________________.
Article II: Purpose
The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be organized under the laws of the state mentioned above.
Article III: Member
The Member is the sole member of the Company. The Member has full authority to manage and operate the Company.
Article IV: Management
The Company shall be managed by the Member. The Member has the power to:
Article V: Contributions
The Member has made an initial capital contribution of $_____________________ to the Company and may make additional contributions as determined by the Member.
Article VI: Distributions
Distributions of profits shall be made to the Member at times and in amounts as determined by the Member.
Article VII: Records
The Company shall maintain complete and accurate records of its business and affairs as required by law.
Article VIII: Indemnification
The Company shall indemnify the Member to the fullest extent permitted by law against any liability incurred in connection with the Company.
Article IX: Amendments
This Agreement may be amended only by a written agreement signed by the Member.
Article X: Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of _____________________.
Article XI: Acceptance
The Member acknowledges and agrees to the terms set forth in this Agreement.
Member Signature: ______________________________________
Date: ______________________________________
When filling out and using the Single-Member Operating Agreement form, it is essential to keep several key points in mind. This document serves as a foundational tool for single-member LLCs, outlining the structure and management of the business.
Using the Single-Member Operating Agreement can help protect personal assets and establish the LLC as a separate legal entity. This document is also beneficial for maintaining clear records and providing proof of the business structure to banks and other entities.