Sample Operating Agreement Single Member

When starting a new business venture, it`s important to have all the necessary legal documents in place. One such document is the operating agreement, which sets out how the business will be run and managed. For a single-member LLC, the operating agreement will be slightly different from that of a multi-member LLC. In this article, we`ll take a look at a sample operating agreement for a single-member LLC.

Before we dive into the specific provisions of the agreement, it`s important to note that every operating agreement should be tailored to the specific needs and circumstances of the business. While a sample agreement can be a good starting point, it`s essential to consult with a lawyer to ensure that the agreement is legally binding and meets all the requirements of your state.

Now, let`s take a look at the key provisions that should be included in a single-member operating agreement:

1. Name and Purpose of the LLC: The agreement should state the name of the LLC and its purpose. This section should also include the address and other contact information for the LLC.

2. Member: Since it is a single-member LLC, this section should identify the sole member and their contact information.

3. Capital Contributions: This section lays out the initial contributions made by the member to the LLC. This can be in the form of cash, property, or services.

4. Management: In a single-member LLC, the member usually has full control over the management of the business. However, this section should still outline the member`s duties and responsibilities, as well as any limitations on their authority.

5. Profits and Losses: This section outlines how profits and losses will be allocated to the member, including any distributions or withdrawals that the member is entitled to.

6. Transfer of Membership: Since it is a single-member LLC, there are no other members to transfer membership to. However, this section should still outline any restrictions on the member`s ability to transfer ownership of the LLC.

7. Dissolution and Liquidation: This section outlines the process for dissolving the LLC, should the member decide to do so. It should also specify how any remaining assets will be distributed.

8. Amendments: This section outlines the procedure for making changes to the operating agreement. It should specify whether changes require unanimous consent or can be made by the member alone.

In conclusion, a single-member operating agreement is an essential legal document for any business owner starting a new LLC. While this sample operating agreement can be a helpful starting point, it`s essential to consult with a lawyer to ensure that the agreement meets all legal requirements and is tailored to the specific needs of your business. With a solid operating agreement in place, you can help protect your business and ensure its success.