While most US states don’t require single-member LLCs to have an operating agreement in place, you may still draft one using this template to protect the owner from liability. The states that do require a single-member LLC operating agreement are California, Maine, Missouri, Delaware, and New York.
The party to this Agreement has signed this document to form a limited liability company under the act of the state of [Member.State] .
The occurrence of any other event causing the company’s dissolution under the laws of the state of (enter state).
The initial office of the company shall be located at (enter street address), but may be relocated by the member at any time.
This business has a single purpose: to engage in all lawful activities covered by the limited liability company act. It should carry all the appropriate business to help meet the company's objectives.
The assets' title shall be held in the company’s name. The member has no direct ownership or rights to these assets. However, the member does have indirect rights over them because of their interest in this company.
This member shall cease to be the company’s member in the circumstances such as death, bankruptcy, and incompetency.
All the additional members shall only be permitted with the consent of the existing single member and other additional members.
EA single-member LLC has only one owner (or member). If you want to add more, consider using a Multi-Member LLC Operating Agreement Template.
The member shall contribute a total agreed amount of (insert dollar amount) to the company as the initial capital.
Except for clauses in the state’s law, the member shall not be obliged to make any additional capital to the business. However, if the member wishes, they can make timely contributions to keep the business running.
The owners of a single-member LLC can use business funds to cover personal expenses by paying themselves through distributions listed in the books as ‘Owner’s Draw.’ Using company funds to cover personal expenses can revoke your business’s liability protection.
The fiscal year’s net profit or loss shall be allocated to the member.The distribution of property and cash shall be carried on according to the member's wishes. However, the company’s assets shouldn’t be used to pay off the member’s expenses or to make investments on behalf of the member.