A Delaware single-member LLC operating agreement establishes the operational framework for a limited liability company with a sole owner. In addition to its standard clauses, the agreement includes provisions for succession planning in case of the member’s incapacity or death and mechanisms for handling disputes or dissolution. Furthermore, the agreement can outline how the business will be taxed.
While completing such an agreement is not mandated by the state, not having one could potentially expose personal assets to risks in bankruptcy or legal disputes arising from business failure. This agreement must be established either before, after, or at the time of filing the company’s formation documents.
Legal Considerations
Statute: Title 6, Chapter 18 – Limited Liability Company Act.
