Sole Member Operating Agreement
Your document is free as part of your one-week membership study. A single-member LLC (SMLLC), also known as a single-member LLC, is a limited liability company (LLC) with an owner (member). As a separate entity, a single-member-LLC protects its owner`s assets from the company`s debts and obligations. We`ve gone to great hard work to simplify and minimize the oversized and blunt language often found in Single Member LLC`s corporate agreements. We have established the individual member agreement of the minimalist. You can fill out this form in less than 5 minutes. Like all our forms, this template is designed for individual use. A single-member LLC Operating Agreement is similar to a traditional LLC operating agreement, except that this document was drafted in the very specific case in which there is only one member. Here you will find details about LLC`s day-to-day activities as well as credentials for the member. There is also a section that describes how new members can join in the future, if you wish.
Imagine a more pessimistic scenario in which your LLC is sued by creditors and then receives membership interest. This section states that such an interest does not include rights to participate in the administration or operation of the LLC. Creditors would only receive distributions (and only until the debt is repaid). As noted above, a company agreement describes LLC`s operations and lists the establishment of the business and the procedures followed in the company. The agreement also clarifies how LLC funds are brought and distributed to the owner. This discussion is useful for the owner and a good way to ensure that procedures are properly documented. Below is an example of a company agreement for an LLC with a single member. Click the buttons below the document to view a full version of the agreement or download an empty template.
Click on LLC`s operating model to enlarge and read some clauses. Some states have statutes that allow a company agreement to limit a director`s personal liability to the company or its members. A lawyer can help you define a limitation of liability approach for managers in your operating documents. An LLC with one member enjoys LLC tax rankings similar to those of an LLC with multiple members. A one-member-LLC business agreement describes the purpose, finances, and operation of an LLC with an owner….