An Idaho single-member LLC operating agreement establishes operational procedures, protects personal assets, and defines the relationship between the sole owner and the business entity. This agreement may also outline procedures for transferring ownership interests in the event of the owner’s death or incapacitation.
Despite state law not legally requiring sole owners to have such an agreement in place, drafting one is highly recommended as it helps demonstrate the separation of personal and business assets, thereby preserving limited liability protection. Without this document, the owner could face exposure of their personal and financial assets to potential legal ramifications such as litigation, bankruptcy, or business failure.
Legal Considerations
Statute: Title 30, Chapter 25 – Limited Liability Companies.
