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Free Single Member-Managed LLC Operating Agreement Template

We’re Just Not Annoying®

operating agreement template for a single member managed lLC

Please enjoy our free single member LLC operating agreement template.

The fact is that in almost every state LLC statute there is specific language that states if the members and managers of an LLC do not maintain the formalities of having an LLC, that the court may not pierce the corporate veil on that point alone.

Many websites that are trying to sell you a bunch of LLC forms and services will tell you that if you don’t have a real solid single member LLC operating agreement that you will lose your protection. That is a complete lie.

The reason why the single member LLC was created was for a single owner to be able to have personal asset protection from the actions of the LLC without the corporate formalities.


single-member operating agreement

Is a single member LLC operating agreement even needed?

The laws governing an LLC in your state are the laws, regardless of what your single member LLC operating agreement says. Now there are some different ways you could structure your LLC agreement, but if you need these clauses, you shouldn’t be buying a form for $30 anyway… You should be consulting an attorney. BUT EVEN THEN! The state laws are the state laws. You could draft a 30-page single member LLC operating agreement and a 5-page articles of organization document for your LLC, but the state laws and court rulings will trump any single member LLC operating agreement if the agreement is contradictory to the LLC law of your state. The funny thing about single member LLC operating agreements is that they almost NEVER enter a court. Ask your attorney how many times he or she has had to produce a single member LLC operating agreement in court.

Should I have a single member LLC operating agreement?

Sure. You might as well! It won’t hurt and if anything, if you take a little bit of time and read through ours and sign it, you’ll be smarter than before you started. We’ve taken a lot of effort to simplify and minimize excess and obtuse language often found in single member llc operating agreements. We created the minimalist’s single member llc operating agreement. Our agreement is made so you can simply print and sign it and you’ll be done. Your bank might want to see it, it’s free, so you might as well have it.
But please do yourself a favor and don’t buy a single member LLC operating agreement. We’ve provided a free single member LLC operating agreement template that is a complex fill in the blank document that can be further customized, or for those of you desiring simplicity, you can use our print and sign single member LLC operating agreement sample as well.

Just remember: your asset protection lies in keeping yourself separate from your single member LLC and the strength of your state’s LLC provisions.
We provide LLC registered agent services in every state. We provide a lot of online tools to help keep your LLC in compliance. We also form LLCs for $100 plus the state fees. We go over the filing with you before we proceed to make sure we’re doing what exactly what you really need done.
If you’re looking for a no-nonsense company to help you form and maintain your LLC—and you don’t want to worry about overpaying for a bunch of junk you don’t need—you’ll love working with our company.

How do single-member LLCs maintain their liability protection?

The way LLCs’ veils get pierced is if a single member LLC owner does not maintain true separation from the LLC. Translation: if you are a single member LLC and pay for all your personal stuff out of the LLCs checking account, you are opening yourself up to a judge possibly saying you and the LLC are the same entity. The single member LLC operating agreement could say some fancy things like allowing its members to pay for personal things out of the company checking account, but at the end of the day, that behavior will open you up to a judge deciding your fate. No single member LLC operating agreement is going to save you from your opponent piercing the corporate veil if you use your LLC bank account to pay for personal items like entertainment, food, personal vacations, etc… If you use your LLC bank account as your personal piggy bank, you will lose your liability protection regardless of paying $5,000 for a single member llc operating agreement.

The best way to protect your assets from the actions of a single member LLC is to keep everything completely separate. Pay for personal things with your personal money. It’s simple, if you need money from the company, the company pays you a lump sum distribution on a regular basis to cover these expenses, or you pay yourself a regular W2 wage. If the single member LLC has expenses, the single member LLC pays for those expenses out of the single member LLC checking account.

What’s the point of LLC operating agreements?

If you have two members fighting amongst themselves the manager managed LLC operating agreement would have everything to do with the entire court ruling in that case. Or if there was a dispute of the actions of one member or one manager and the validity of an action of that member or manager with an outside party, you would see the LLC operating agreement come into play. But let’s say an LLC doesn’t pay its phone bill. The phone company will almost never request a copy of the LLC operating agreement.

What if after reading this, I choose to believe the 20 other websites selling LLC operating agreements?

You could still save some money and customize your own LLC operating agreement. We provide a free template here for a completely customizable LLC operating agreement.

You have to ask yourself, though, if you should believe something as fact from a website selling that thing to you…

Corporate Compliance
by Local Corporate Guides®