Single-Owner LLC Operating Agreement

This is a template for an operating agreement for a single-member limited liability company (“LLC”). An operating agreement establishes the rights and responsibilities of the LLC and its members (i.e. owners). This agreement is a very simple operating agreement that should only be used by businesses that have one owner and do not expect to expand their ownership.

 

This doesn’t mean that ownership can’t expand, it is just that the agreement will need to be updated to add important details to accommodate additional members (e.g. details on the decision-making process with multiple members, adding and removing members, etc).

 

If you have an LLC, you should have an operating agreement. An operating agreement helps establish the business as an entity separate from yourself for liability purposes. It also helps to make sure you and the other owners are on the same page (if more than one owner), and to outline decision making and other important business processes. 

 

If your business falls under the definition of a restricted professional LLC in Pennsylvania, you should speak with an attorney about any additional edits that may be required. 

-Introductory page with key considerations and more information on how to use most efficiently 

 

-Contract template with comment  boxes that explain the intricacies of a simple single member LLC operating agreement, including  clauses that account for ownership, decision making and compensation, member rights, liability protection, ownership transfer rights, and other essential governing issues!

-A dog walking business with one owner who runs the company and formed an LLC 

 

-A consulting business with one owner who runs the company and formed an LLC 

 

-A graphic designer who provides services through an LLC 

This template was drafted by a Pennsylvania licensed attorney under Pennsylvania laws. It may be used by individuals in other states but if you are located in another state, it may be beneficial to speak to an attorney licensed in your state for any specific considerations. Templates do not constitute specific legal advice or create an attorney-client relationship. If you have specific questions about how you should use the resource or about your unique situation, please speak with an attorney.