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Operating Agreement For Single Member Llc Template for United States

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Key Requirements PROMPT example:

Operating Agreement For Single Member Llc

"I need an Operating Agreement for Single Member LLC for my consulting business starting January 2025, keeping it simple and focused on professional services, with standard liability protection and tax treatment as a disregarded entity."

Document background
The Operating Agreement For Single Member LLC is a fundamental legal document required or strongly recommended in most U.S. states for establishing and operating a single-member limited liability company. While some states don't legally mandate an operating agreement, having one is crucial for maintaining liability protection, establishing business legitimacy, and providing clear operational guidelines. The document includes essential provisions about ownership, capital contributions, management structure, profit distributions, tax treatment, and dissolution procedures. It helps distinguish the LLC as a separate legal entity from its owner, which is vital for maintaining limited liability protection. The agreement should comply with state-specific LLC laws and can be customized to address particular business needs while maintaining the basic requirements of the jurisdiction where the LLC is formed.
Suggested Sections

1. Parties: Identifies the Single Member LLC and the sole member entering into the agreement

2. Background: States the purpose of creating the LLC and the intent to establish operating rules

3. Definitions: Defines key terms used throughout the agreement

4. Formation: Details about LLC formation, including state of organization, registered agent, and purpose

5. Capital Contributions: Specifies initial and any additional capital contributions by the member

6. Management: Establishes management structure and member's authority to act on behalf of the LLC

7. Distributions: Details how and when profits and losses will be distributed to the member

8. Tax Matters: Addresses tax treatment, elections, and reporting requirements

9. Books and Records: Requirements for maintaining financial records and other important documentation

10. Transfer Restrictions: Rules regarding transfer of membership interest

11. Dissolution: Circumstances and procedures for dissolving the LLC

12. General Provisions: Standard legal provisions including governing law, amendments, and notices

Optional Sections

1. Succession Planning: Provisions for transfer of ownership upon death or incapacity of the member

2. Employment Matters: Include if the LLC will have employees, covering hiring authority and policies

3. Intellectual Property: Include if the LLC owns or develops intellectual property

4. Confidentiality: Include if the LLC handles sensitive information or trade secrets

5. Insurance Requirements: Include if specific insurance coverage is mandatory for the business

6. Banking Matters: Include if specific banking arrangements or authorities need to be documented

7. Additional Businesses: Include if the member operates other businesses to address potential conflicts

8. Real Estate: Include if the LLC owns or leases real property

Suggested Schedules

1. Schedule A - Member Information: Details of the member including contact information and initial capital contribution

2. Schedule B - Initial Assets: List of assets contributed to the LLC at formation

3. Schedule C - Principal Office and Locations: Address of principal office and any additional business locations

4. Appendix 1 - Certificate of Formation: Copy of the filed Certificate of Formation or Articles of Organization

5. Appendix 2 - Business Plan: Optional detailed business plan and operational guidelines

6. Appendix 3 - Tax Elections: Copies of any tax elections filed with the IRS or state authorities

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




































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Relevant Industries

Professional Services

Retail

Real Estate

Technology

Consulting

Healthcare

Construction

E-commerce

Manufacturing

Entertainment

Food Service

Financial Services

Agriculture

Transportation

Education

Relevant Teams

Legal

Finance

Compliance

Operations

Tax

Corporate Governance

Risk Management

Business Development

Administration

Relevant Roles

Business Owner

Entrepreneur

CEO

Managing Director

Company Secretary

Chief Financial Officer

Legal Counsel

Corporate Attorney

Business Development Manager

Operations Manager

Tax Advisor

Accountant

Financial Controller

Risk Manager

Compliance Officer

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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