Printable Single-Member Operating Agreement Document Make My Single-Member Operating Agreement Online

Printable Single-Member Operating Agreement Document

A Single-Member Operating Agreement is a legal document that outlines the ownership and operating procedures for a single-member limited liability company (LLC). This form helps clarify the structure of the business and protects the owner's personal assets. Having this agreement in place can make managing the LLC smoother and provide peace of mind.

Form Sample

Single-Member Operating Agreement Template

This Single-Member Operating Agreement ("Agreement") is made as of [Date] by and between [Member Name], the sole member ("Member") of [Company Name], a [State] Limited Liability Company ("LLC"). This Agreement is in accordance with the laws of the State of [State].

1. Formation of LLC

The Member has formed a Limited Liability Company under the laws of the State of [State] by filing Articles of Organization with the appropriate state agency.

2. Purpose

The purpose of the LLC is to engage in any lawful act or activity for which a limited liability company may be formed in the State of [State].

3. Member's Capital Contributions

The Member has made an initial capital contributions as follows:

  • Amount: $[Amount]
  • Type of Contribution: [e.g., Cash, Property]

4. Management of the LLC

The Member shall have full authority to manage and control the business and affairs of the LLC. No other persons or entities shall participate in the management of the LLC.

5. Profits and Losses

All profits and losses of the LLC shall be allocated to the Member. This allocation will occur in accordance with the Member's percentage of ownership, which is 100%.

6. Distributions

Distributions of cash or other property may be made to the Member at the discretion of the Member, subject to the provisions of applicable law.

7. Indemnification

The LLC shall indemnify the Member to the fullest extent permitted by law against any and all expenses and liabilities incurred by the Member in connection with the LLC.

8. Amendment

This Agreement may be amended only by a written agreement signed by the Member.

9. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of [State].

10. Entire Agreement

This document constitutes the entire agreement between the Member and the LLC, and supersedes any prior agreements, understandings, or representations.

IN WITNESS WHEREOF, the Member has executed this Agreement as of the date first written above.

Member: _______________________________

Printed Name: ________________________

Misconceptions

Understanding the Single-Member Operating Agreement form is crucial for anyone operating a single-member limited liability company (LLC). However, several misconceptions often cloud this important document. Here are six common misunderstandings:

  • It is not necessary for single-member LLCs. Many believe that a single-member operating agreement is optional. While it may not be legally required in every state, having one provides clarity and structure, which can protect your personal assets.
  • It cannot be customized. Some think that a single-member operating agreement must follow a strict template. In reality, you can tailor the agreement to meet your specific needs, outlining management procedures and operational guidelines.
  • It has no legal standing. There's a misconception that this agreement holds no weight in legal matters. In fact, a well-drafted operating agreement can serve as a critical document in disputes or when proving the legitimacy of your LLC.
  • It is only for tax purposes. Some people assume the agreement is solely for tax benefits. While it does help with tax classification, its primary purpose is to define the structure and operations of your LLC.
  • It is the same as an Articles of Organization. Many confuse the operating agreement with the Articles of Organization. The former outlines the internal workings of the LLC, while the latter is a document filed with the state to officially form the LLC.
  • Once created, it cannot be changed. There is a belief that an operating agreement is set in stone. In fact, you can amend it as your business evolves, ensuring it remains relevant to your operations.

Key takeaways

When filling out and using the Single-Member Operating Agreement form, keep the following key takeaways in mind:

  1. Define Your Business Structure: Clearly state that your business is a single-member LLC to establish its legal status.
  2. Outline Ownership: Specify that you are the sole owner and outline your rights and responsibilities.
  3. Detail Management Procedures: Describe how the business will be managed, including decision-making processes.
  4. Include Financial Information: Provide information on how profits and losses will be handled, including distributions.
  5. Address Liability Protection: Reiterate the limited liability benefits of operating as an LLC to protect personal assets.
  6. Specify Duration: State whether the LLC is intended to operate indefinitely or for a specific duration.
  7. Set Forth Amendment Procedures: Include guidelines on how the agreement can be amended in the future.
  8. Sign and Date: Ensure that you sign and date the document to validate it legally.
  9. Keep Records: Store the agreement in a safe place and maintain a copy for your business records.

These takeaways will help you navigate the process of creating and utilizing your Single-Member Operating Agreement effectively.