Document background
The Single Owner LLC Operating Agreement is a foundational document used when an individual establishes a Limited Liability Company with sole ownership in the United States. This essential agreement serves multiple purposes: it confirms the LLC's single-member status, establishes operating procedures, defines the relationship between the owner and the company, and provides crucial liability protection. The document becomes particularly important in maintaining the separation between personal and business assets, which is essential for preserving limited liability protection. While state laws don't typically require single-member LLCs to have an operating agreement, having one is considered best practice as it demonstrates proper business governance, helps in dealings with banks and other institutions, and provides clear guidelines for business operations. The agreement should comply with the specific state jurisdiction where the LLC is formed and can be customized to address particular business needs while maintaining legal compliance.
