Single Member LLC Operating Agreement: How to Create and What to Include
Jump to Section
Quick Facts — Single Member LLC Operating Agreement Lawyers
- Avg cost to draft a Single Member LLC Operating Agreement: $400.00
- Avg cost to review a Single Member LLC Operating Agreement: $700.00
- Lawyers available: 46 business lawyers
- Clients helped: 15 recent single member LLC operating agreement projects
- Avg lawyer rating: 5.0 (7 reviews)
What is a Single Member LLC Operating Agreement?
A single member LLC operating agreement is a legal document that sets forth the rules and bylaws of a company. This operating agreement is often created along with the articles of organization during business formation and apply to single-member LLCs. Limited liability companies need operating agreements to protect their liability.
Does a Single Member LLC Need an Operating Agreement?
Even though a single-member LLC is only made up of one person, an operating agreement is still recommended. Here are a few examples of why it’s important for single-member LLC operations to file a formal operating agreement:
Liability Protection
One of the major reasons why business owners choose to file as a limited liability company is to separate their personal assets from business assets. This is desired since in the event a company is sued, the owner’s personal assets cannot be pursued. An LLC operating agreement helps to separate business affairs from personal affairs, which further helps to secure asset protection.
State Default Laws
If a single-member LLC does not file an operating agreement, they are subject to their state’s default laws. Default laws are state rules that designate who to do in certain legal situations. Even though these laws were defined to ensure business owners’ bases are covered, abiding by them can sometimes hurt business owners.
Operating agreements help make sure that an owner’s wishes are honored when certain events occur. For example, if a founder becomes incapacitated, state default laws might automatically transfer rights to ownership to the founder’s next of kin. However, this isn’t always a great solution, since their next of kin may not be qualified to run the business. Filing an operating agreement allows owners to specify exactly what should happen in these situations.
Banks and Investors
Members on single-member LLCs or joint ventures may find that their state does not require an operating agreement. However, banks and investors often require a copy of a company’s operating agreement before they will approve a commercial loan. This is true because an operating agreement is the best way to verify who owns the company, since the articles of organization list the agent, but not the owner.
Check out this article to learn more about why single-member LLC operations need operating agreements.
CC verified
What to Include in a Single Member LLC Operating Agreement
Single member LLC operating agreements are legally binding documents that lay out the rules and bylaws of a company. They include information about who owns a company, what they can do, and what procedures to follow when certain scenarios occur. These agreements can also apply to limited partnerships and joint ventures, also known as a pass through entity.
Here is an overview of what to include in a successful single member LLC operating agreement:
- Basic LLC details: name, location, and purpose of the company
- Registered Agent: The person responsible for handling company documents, also known as a company’s registered agent
- Term of LLC: can be a set amount of time or “perpetual”
- LLC membership: for single-member operations, there will only be one person listed
- Financial instructions: how to handle profits, losses, bonuses
- Accounting details: who is responsible for accounting and which method (cash or accrual)
- Legal: indemnification and limitation of liability clauses regulate who is responsible in the event of a lawsuit
- Dissolution: what to do when a business shuts its doors
For more details about what should be included in a single member LLC operating agreement, check out this article.
Single Member LLC Operating Agreement Templates
How to Create a Single Member LLC Operating Agreement
Creating a single member LLC operating agreement is a vital part of the process of opening a new limited liability company. It helps defines company processes, procedures, and legal recourses that can be taken.
Creating a single member LLC operating agreement doesn’t have to be intimidating. Using an easy three-step process is the best way to create one.
Step One: Consider Hiring LLC Lawyers
Having the expertise of a qualified corporate lawyer is a great tool during the operating agreement creation process. Lawyers know the ins and outs of the law, which means they can advise company owners on what protections should be included in their agreement and which ones may not be necessary.
Lawyers with experience in creating operating agreements can also help make the process run more smoothly and be completed sooner.
Step Two: Compile Operating Agreement Information
The most important thing about an operating agreement is which terms are included in it. Company owners should collaborate with LLC lawyers to determine what company information should be included and which processes and procedures need to be outlined in the agreement.
Here are some examples of what information should be gathered for preparation of a single member LLC operating agreement:
- Basic details of the company
- Company purpose
- Member information
- Company duration
- Initial capital of the company
- Tax status
- Manager information
- Limitation of liability
- Profit and loss determinations
- Effective date and end date (can be perpetual)
- Signatures and dates
Step Three: Write Operating Agreement
After compiling all operating agreement pertinent information, it’s time to write the agreement. A corporate lawyer can aid in this process by drafting the full document for a business owner, or a template can be used to achieve this step. It’s important to ensure legal verbiage is concise and accurate, so the assistance of a lawyer is recommended for this stage of the operating agreement creation process.
Check out this webpage for an example of a single member LLC operating agreement template.
Image via Pexels by Teona Swift
What if an LLC Doesn’t Have an Operating Agreement?
If an LLC opts out of creating and filing an operating agreement, they are putting themselves at unnecessary risk. Since companies without operating agreements are obligated to abide by state default laws, they may put making certain decisions in the hands of state legislature, which is not always desirable.
Here is an example of what might happen to an LLC who chooses not to create a single member LLC operating agreement:
- Joanne forms a single member LLC to run a small retail operation out of her home
- Since she is the only member of the LLC and she knows how she likes to run her business, she opts to skip the operating agreement
- When it comes time to file her taxes, Joanne has a difficult time separating her business assets from her personal assets, which puts her at more of a risk for being audited
- An operating agreement would help Joanne in separating these assets since formal, written documentation would give clear instructions on how to keep the finances separate
Get more information about the importance of an operating agreement in this article.
Get Help with an LLC Operating Agreement
Are you ready to prepare and file a single member LLC operating agreement for your business? Talking with a qualified professional is the first step to ensuring your document is legally binding and all-inclusive of the necessary terms. Post a project on ContractsCounsel today to get connected with corporate lawyers who specialize in single member LLC operating agreements.
See Real Single Member LLC Operating Agreement Projects
California Update LLC Operating Agreement Drafting
- California
- 4 lawyer bids
- $400 - $1,995
Kansas Seeking expert assistance drafting an operating agreement and a contract of service Drafting
- Kansas
- 8 lawyer bids
- $285 - $1,895
Illinois Series LLC Operating Agreement Review Prepare & File
- Illinois
- 6 lawyer bids
- $325 - $1,000
Texas Fixed-Fee Review: Single-Member LLC Operating Agreement (6 pages) – Texas Review
- Texas
- 8 lawyer bids
- $250 - $800
Florida Trucking business operating agreement drafting and service contract reviews Review
- Florida
- 6 lawyer bids
- $500 - $4,800
See all Single Member LLC Operating Agreement projects
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Meet some of our Single Member LLC Operating Agreement Lawyers
Steven S.
Steven Stark has more than 35 years of experience in business and commercial law representing start-ups as well as large and small companies spanning a wide variety of industries. Steven has provided winning strategies, valuable advice, and highly effective counsel on legal issues in the areas of Business Entity Formation and Organization, Drafting Key Business Contracts, Trademark and Copyright Registration, Independent Contractor Relationships, and Website Compliance, including Terms and Privacy Policies. Steven has also served as General Counsel for companies providing software development, financial services, digital marketing, and eCommerce platforms. Steven’s tactical business and client focused approach to drafting contracts, polices and corporate documents results in favorable outcomes at a fraction of the typical legal cost to his clients. Steven received his Juris Doctor degree at New York Law School and his Bachelor of Business Administration degree at Hofstra University.
"Steve was amazing to work with. Work was completed and delivered quickly with great attention to detail. I would definitely recommend Steve for any legal issues or advice."
Jeremiah C.
Jeremiah C.
Creative, results driven business & technology executive with 27 years of experience (17+ as a business/corporate lawyer). A problem solver with a passion for business, technology, and law. I bring a thorough understanding of the intersection of the law and business needs to any endeavor, having founded multiple startups myself with successful exits. I provide professional business and legal consulting. Throughout my career I've represented a number large corporations (including some of the top Fortune 500 companies) but the vast majority of my clients these days are startups and small businesses. Having represented hundreds of successful crowdfunded startups, I'm one of the most well known attorneys for startups seeking CF funds. I hold a Juris Doctor degree with a focus on Business/Corporate Law, a Master of Business Administration degree in Entrepreneurship, A Master of Education degree and dual Bachelor of Science degrees. I look forward to working with any parties that have a need for my skill sets.
"Jeremiah was pleasant to speak to and provided high quality work. I appreciate that he took the time to call me personally instead of a paralegal. Work delivered early and high quality! Highly recommend"
Darryl S.
Darryl S.
I offer flat/fixed fees rather than hourly work to help lower your legal costs and align our interests. I specialize in contract law and focus on making sure your contract is clear, protects your interests and meets your needs. You can expect fast, straightforward communication from me, making sure you understand every step. With my experience, you'll get a detailed review of your contract at a fair, fixed price, without any surprises. I have over 30 years of business and legal experience that I bring to your project. I graduated from The University of Texas School of Law with High Honors in 1993 and practiced at Texas' largest law firm. I have founded companies and so understand how to be helpful as both a lawyer and business owner.
"Excellent attorney! D was thorough, communicative, very helpful, and knowledgable about the relevant SaaS topics. Really appreciate his ethical and practical approach to the law--specifically lets you know if certain elements are unnecessary extras charges. I look forward to working with him and his team again in the future!"
Jason H.
Jason has been providing legal insight and business expertise since 2001. He is admitted to both the Virginia Bar and the Texas State Bar, and also proud of his membership to the Fellowship of Ministers and Churches. Having served many people, companies and organizations with legal and business needs, his peers and clients know him to be a high-performing and skilled attorney who genuinely cares about his clients. In addition to being a trusted legal advisor, he is a keen business advisor for executive leadership and senior leadership teams on corporate legal and regulatory matters. His personal mission is to take a genuine interest in his clients, and serve as a primary resource to them.
"Jason was outstanding! Professional and Proactive. I was very happy with the services he provided."
Alexander N.
Having overseen over $1.2 billion in transaction value, we are able to provide top-tier service at affordable rates, with much more personalized attention and fast turnarounds. After working for a AM Law Top 100 firm, I started my own firm and have been lucky enough to represent numerous conglomerates (FOX, Endeavor, etc.), promising startups, small businesses and private individuals. Our areas of expertise - Business Formations and Operating Agreements; Capital Raises and Debt Financing; Commercial Transactions; M&A; Real Estate; Intellectual Property; Employment and Hiring; Outside General Counsel; Corporate Agreements and Governance; Litigation and Dispute Resolution. We have been featured in The Wall Street Journal, Marketwatch, Yahoo Finance, Variety, Business Insider, Los Angeles Magazine, the LA Times, and others. We are driven by an unwavering commitment to our clients, going above and beyond to deliver results.
"Great time, very responsive and receptive to revisions and clarifications to documents"
June 22, 2026
Kristen O.
Fractional General Counsel with deep experience in contracts, employment, and operational compliance. I support companies as their day-to-day legal partner—handling agreements, managing risk, and advising leadership on practical business decisions. Whether you need a quick contract review or ongoing legal support, I provide clear, strategic guidance tailored to your business.
April 20, 2026
Fahad J.
Fahad Juneja is a transactional attorney with over 10 years of experience, admitted in California and Texas. His practice covers M&A, commercial contracts, and corporate governance, including drafting and negotiating purchase agreements and related transaction documents, NDAs, collaboration agreements, service agreements, consulting agreements, and other commercial contracts. Fahad began his career in the private equity M&A group of a large law firm (Sidley), then moved in-house to Paramount Pictures, and later advised technology and manufacturing clients at a Bay Area boutique. He now maintains a solo practice, where he supports a primary client and advises fintech and other emerging companies on commercial, corporate, and strategic matters. Fahad's approach emphasizes efficient negotiation, thoughtful drafting, and practical risk allocation. He is available to support M&A transactions, ancillary transaction documents, contract drafting and review, and general corporate matters.
Find the best lawyer for your project
Browse Lawyers NowLawyer Reviews for Single Member LLC Operating Agreement Projects
Seeking expert assistance drafting an operating agreement and a contract of service
"Clear, to the point, and very good at what she does. 11/10 recommend."
ContractsCounsel User
Series LLC Operating Agreement Review
"Ryenne helped review my operating agreement and ensured I had the proper structure for starting my business"
ContractsCounsel User
Trucking business operating agreement drafting and service contract reviews
"awesome to work with."
ContractsCounsel User
Operating agreement
"Quick and responsive! No complaints here would retain Bryan again."
ContractsCounsel User
Business
Single Member LLC Operating Agreement
New York
Can a Single Member LLC Operating Agreement be modified to include additional members?
I am the sole owner of a Single Member LLC, and I am considering bringing in additional members to help grow the business. However, my current operating agreement does not provide for the admission of new members. I want to know if it is possible to modify the existing Single Member LLC Operating Agreement to include provisions for the admission of additional members, and if so, what steps would need to be taken to do so legally and effectively.
Danny J.
Yes, a Single Member LLC Operating Agreement can be modified to include additional members. This process involves: 1. Drafting an amendment to your current agreement 2. Obtaining necessary approvals 3. Updating state filings 4. Revising tax arrangements However, this transition involves several legal and tax implications that require careful consideration: - Ensuring compliance with state laws - Structuring ownership and voting rights - Addressing management changes - Navigating tax implications Given these complexities, it's advisable to consult with a legal professional to ensure the process is handled correctly and your interests are protected. Feel free to reach out to me, if you'd like to discuss.
Limited Liability Company
Single Member LLC Operating Agreement
Kansas
What are the key elements to include in a Single Member LLC Operating Agreement?
I recently started a small business and formed a single-member LLC to protect my personal assets. While researching the legal requirements, I came across the concept of a Single Member LLC Operating Agreement, but I'm not sure what specific provisions should be included in this document. I want to ensure that my business is properly structured and protected, so I'm seeking guidance on the essential elements that should be addressed in the operating agreement to safeguard my interests as the sole owner of the LLC.
Randy M.
Here’s how you’d want to structure a Single-Member LLC Operating Agreement so it serves its intended purpose: protecting your liability shield, showing outside parties that the business is run as a separate entity, and giving you a clear framework for management and succession. Basic Company Information Your agreement should restate the official LLC name exactly as it appears on your articles of organization, along with the principal place of business, formation date, and the state where the LLC was filed. Identify the registered agent and office on record with the Secretary of State. Most agreements also include a short section on business purpose. Keeping this broad, such as “to engage in any lawful business activity,” allows flexibility if you expand into new areas later. You can also specify duration as perpetual, which is typical unless you want the LLC to exist for a fixed term. Member Information and Ownership List your name and address as the sole member and confirm that you hold 100 percent of the membership interest. State your initial capital contribution and, if you contributed property rather than cash, note its fair market value. If you don’t intend to make further contributions, you can include a sentence that no additional contributions are required. That language prevents confusion later if you inject more capital. Management and Authority Make it clear that the LLC is member-managed. As the sole member, you have the authority to open and close bank accounts, hire or fire employees, sign contracts, and borrow money in the LLC’s name. You don’t need to create elaborate voting or meeting provisions, but you should include a line authorizing yourself to act on behalf of the LLC without additional approvals. Some owners choose to add language about documenting major decisions in writing to create a paper trail for liability purposes. Financial Provisions Specify that all profits and losses flow to you as the sole member. Include your distribution policy; many agreements say distributions will be made at the member’s discretion. It’s also a good idea to confirm that the LLC will keep its own bank account and books, with no commingling of personal funds. Identify the fiscal year, usually the calendar year, and note how the LLC will be taxed. By default, a single-member LLC is disregarded for federal tax purposes, meaning income and expenses are reported on Schedule C of your personal tax return. If you intend to elect S corporation taxation, reference that option in the agreement, but remember you must separately file IRS Form 2553. Liability and Indemnification Reinforce the liability shield by stating that you’re not personally responsible for the debts or obligations of the LLC. Add an indemnification clause so the company reimburses you for expenses incurred while acting on its behalf, provided you acted in good faith. This is especially useful if you sign contracts or face claims while operating the business. Pair this with a requirement that the LLC may maintain insurance coverage appropriate to its activities. Succession and Dissolution Address what happens if you die or become incapacitated. You can designate a successor to inherit your membership interest or instruct that the LLC be dissolved. If you don’t provide for this, your interest may pass under your estate plan, which could create delays or disputes. Also outline how dissolution works: paying debts, filing final tax returns, and distributing any remaining assets. Even though you’re the only member, courts and creditors take these provisions seriously when assessing whether you respected corporate formalities. Administrative Provisions Wrap up with standard contract clauses. Include governing law (your state), a severability clause to preserve the rest of the agreement if one part is invalid, and an amendment provision stating you may amend the agreement in writing at any time. Finish with the effective date and your signature. Need Help? Contracts Counsel connects you with experienced business attorneys who specialize in LLC formation and can guide you through every step of drafting, reviewing, and finalizing your operating agreement to ensure maximum protection for your business and personal assets.
Startup
Single Member LLC Operating Agreement
Alabama
Start a trucking business as an owner operator
Experienced driver wants to own the truck and make a business out of it
John H.
You will need to begin by picking a name for your trucking business and then proceed to reserving the name with the Secretary of State and then you will need to choose what business entity your business will operate under. I have experience drafting the paperwork you will need to get set up.
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
View Trustpilot ReviewHow It Works
Business lawyers by top cities
- Austin Business Lawyers
- Boston Business Lawyers
- Chicago Business Lawyers
- Dallas Business Lawyers
- Denver Business Lawyers
- Houston Business Lawyers
- Los Angeles Business Lawyers
- New York Business Lawyers
- Phoenix Business Lawyers
- San Diego Business Lawyers
- Tampa Business Lawyers
Single Member LLC Operating Agreement lawyers by city
- Austin Single Member LLC Operating Agreement Lawyers
- Boston Single Member LLC Operating Agreement Lawyers
- Chicago Single Member LLC Operating Agreement Lawyers
- Dallas Single Member LLC Operating Agreement Lawyers
- Denver Single Member LLC Operating Agreement Lawyers
- Houston Single Member LLC Operating Agreement Lawyers
- Los Angeles Single Member LLC Operating Agreement Lawyers
- New York Single Member LLC Operating Agreement Lawyers
- Phoenix Single Member LLC Operating Agreement Lawyers
- San Diego Single Member LLC Operating Agreement Lawyers
- Tampa Single Member LLC Operating Agreement Lawyers
ContractsCounsel User
Operating agreement
Location: Texas
Turnaround: Over a week
Service: Drafting
Doc Type: Single Member LLC Operating Agreement
Number of Bids: 6
Bid Range: $1 - $2,500
User Feedback:
ContractsCounsel User