Drawing Up the Single-Member LLC Operating Agreement

Standardized Legal Documents Drawing Up the Single-Member LLC Operating Agreement

Create Your Single-Member LLC Operating Agreement With Ease

Starting a business is overwhelming in itself, let alone if you’re doing it by yourself. If you’re planning on forming a limited liability company (LLC) or you’ve already founded your business, drawing up various legal documents is vital. One of those legal documents is an operating agreement.

The first step toward drafting a single-member LLC operating agreement is understanding it and its importance. The next step is putting pen to paper. Follow our guide and kill two birds with one stone! With DoNotPay, googling “how to write a contract” and “contract templates” will be a thing of the past.

What Is an Operating Agreement?

An operating agreement is a legal document any LLC creates to define its rules, regulations, and responsibilities—essentially, how the company operates and what the members’ roles are. This agreement is usually optional—in Florida, for example—and you should draft it for your own benefit. Some states require LLCs to draft this document, including:


  • Maine
  • Missouri
  • California
  • New York
  • Delaware

While certain state laws stipulate that your LLC must have an operating agreement, you do not need to file it with the authorities—it’s enough to keep a record of it.

The Operating Agreement for a Single-Member LLC Explained

An operating agreement for a single-member LLC isn’t that different from the same document for any other LLC. The key difference is that the single-member LLC operating agreement describes a business of only one owner, while the LLC operating agreement is in certain aspects like a partnership agreement.

You may be confused as to why you need this agreement since you’re the sole member. Even when it’s not required by law, your operating agreement will build your company’s foundation and officially state that you’re running a business.

The Importance of an Operating Agreement for a Single-Member LLC

Tailoring an operating agreement to fit your needs and vision of your company will go better if you understand the why behind it. Here’s an overview of the reasons why an operating agreement is important for your single-member LLC:

Reason Brief Explanation

The business-owner separation

The saying don’t mix business with pleasure exists for a reason. You need to separate yourself from your company officially in case of any tax or liability issues

Description of your company

Your operating agreement will be your blueprint for how you want to run your company, which is important for yourself and for any future members

Your rules vs. default rules

Without an operating agreement, your LLC is subject to the default state rules that may not coincide with your intentions for your company

Business succession

A succession plan is a vital part of your operating agreement. To avoid future legal battles, you should decide who would take over your company in case you’re no longer able to run it

Should I Get a Single-Member LLC Operating Agreement Template for Free?

Since the single-member LLC operating agreement seems like a simple document, you may consider downloading a free template and filling out the blanks. This is a bad idea even for the most boilerplate legal documents because templates may:

  1. Not be grammatically correct
  2. Have a watermark
  3. Not have up-to-date clauses
  4. Not cover everything you want to include in your agreement

If the alternative to an unreliable template is a pricey lawyer, you might find yourself between a rock and a hard place. Fortunately, our AI-powered app has the best of both worlds—it’s professional and inexpensive, and it will draft your LLC operating agreement in no time!

Use DoNotPay To Draw Up a Single-Member LLC Operating Agreement in a Couple of Clicks

DoNotPay is the perfect choice when you want to create your single-member LLC operating agreement and many other legal documents.

Here’s how our app works:

  1. Visit DoNotPay in a web browser
  2. Type in Operating Agreement in the search bar
  3. Answer several questions

The app will generate your agreement in a few minutes!

As your business grows, you can also turn to DoNotPay to draft a non-disclosure agreement or a non-compete agreement. Our app is also well-versed in creating the following documents:

Another benefit of drawing up legal documents with DoNotPay is that you can easily e-sign them and fax them to the other party, with the help of our Online Fax feature.

What Other Legal Documents Can DoNotPay Help Me With?

Aside from creating agreements for you so that you don’t have to hire a lawyer and waste your time and money, we have also created a growing legal-document knowledge base where you can learn about:

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