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Single-member LLCs can benefit from having an operating agreement in place for several reasons:

  • Establishing Separation of Personal and Business Affairs: An operating agreement can help to separate the financial and legal responsibilities of the single member from the LLC, providing protection for the member's personal assets in case of legal action or financial liabilities.

  • Governance and decision-making: An operating agreement can establish the rules and procedures for how the SMLLC will be run, including how decisions will be made, how meetings will be held, and how disputes will be resolved.

  • Clarity and Consistency: An operating agreement can provide clarity and consistency in how the SMLLC is run, and it can help to ensure that all actions taken by the LLC are in compliance with the law and the agreement.

  • Legal Compliance: Some states require SMLLCs to have an operating agreement, and certain actions such as dissolution of the LLC or transferring ownership may require an operating agreement.

  • Future Planning: An operating agreement can help the single member plan for the future and anticipate potential issues, such as what will happen to the LLC if the member becomes incapacitated or dies.


This operating agreement covers everything you need as a single member LLC.

Single Member LLC Operating Agreement

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