An Arkansas single-member LLC operating agreement establishes the operational framework and governance structure of a limited liability company owned and operated by a sole member. While state law does not mandate the creation of such agreements, having one in place is highly recommended for clarifying the rights, responsibilities, and internal workings of the business.
This document outlines decision-making procedures, methods for distributing profits, and procedures for dissolution. By clearly defining roles, responsibilities, and mechanisms for resolving disputes, the agreement mitigates potential conflicts and promotes seamless business operations. Furthermore, it helps demonstrate the separation of personal and business assets, thereby maintaining the limited liability protection afforded by the LLC structure.
Legal Considerations
Statute: Title 4, Subtitle 3, Chapter 38 – Uniform Limited Liability Company Act.
