Does a Single Member LLC Need a Limited Liability Company Agreement?
A limited liability company agreement is one of the most important documents for a single member LLC to adopt for his or her business. There are several reasons why and there is one important reason why not having this agreement can be disastrous. A common question is whether a single member LLC really needs an operating agreement? After all, that one person will be the only person who can decide on business matters, receive profit and loss allocations and accept distributions of LLC assets. BENEFITS OF A LIMITED LIABILITY COMPANY AGREEMENT TO A SINGLE MEMBER The most common purposes of a limited liability company agreement include issues of control, finance, fiduciary duties that appear more relevant to a multi-member LLC. However, operating agreements can provide owners of a single member LLC the same benefits. It is essential that a single member acknowledge that his or her limited liability company is a legal entity and business vehicle separate and apart from himself or herself. W
