A California single-member LLC operating agreement is a document that outlines the internal structure and operational protocols of a limited liability company with only one owner, referred to as a member. It includes detailed provisions regarding decision-making processes, profit distribution, and procedures for the transfer or dissolution of membership interest.
State law mandates the implementation of this type of agreement, whether documented in writing, verbally agreed upon, or implied. Compliance entails completing and filing the document, serving as proof of ownership. A well-crafted agreement can provide clarity and legal protection for the sole owner. Additionally, it demonstrates to external parties the seriousness and professionalism of the business, potentially facilitating financial transactions or partnerships.