A North Carolina single-member LLC operating agreement is a voluntary yet crucial legal contract that delineates the business structure and rules for a sole proprietorship. While the state doesn’t mandate filing this document for business operations, its significance lies in safeguarding the owner’s personal assets from business liabilities.
This agreement clearly distinguishes the owner from the company, which is essential for liability protection. Furthermore, the agreement outlines procedures for handling the member’s incapacity or business dissolution. Although not a legal requirement for LLC formation, it’s often necessary for financial activities like securing loans or opening bank accounts.
