Why Every Business Needs an Operating Agreement (Even a One-Person LLC)

Recipe
Written By M. PH

Introduction:

Many small business owners think they don’t need an Operating Agreement, especially if they’re a one-person LLC. In reality, this document is essential to protect your business. Here’s why.

What Is an Operating Agreement?:

An Operating Agreement outlines how your LLC will be managed and operated.

Why It’s Important for Single-Member LLCs:

  • Provides legal protection by separating personal and business assets.

  • Establishes guidelines for how the business will be run in case of legal disputes.

What to Include:

  • Ownership structure

  • Profit and loss distribution

  • Management responsibilities

Conclusion:

Even if you’re a single-member LLC, an Operating Agreement is critical to protect your business. Contact us for help drafting this vital document.

M. PH
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