An Indiana single-member LLC operating agreement is a legal document that lays out the rules and regulations for the newly formed limited liability company’s activities. It guides the relationship between the business and the owner, defining the structure for financial, tax, and legal purposes.
Although Indiana does not require an operating agreement, verifying the company’s legal status and operations can be beneficial in obtaining loans or investments. If an operating agreement is not created, the owner’s authority may be limited, and their personal assets may be at risk if the business fails or faces legal issues. By implementing the document, the owner’s assets are kept separate from the business and are not liable for the company’s debts.