A Rhode Island single-member LLC operating agreement is a vital document a sole business owner uses to outline the governance, financial procedures, and decision-making guidelines of their company. Even though state law doesn’t mandate them to create it, this document helps distinguish the owner’s personal assets and liabilities from the LLC’s.
By writing this document, the sole owner can shield themselves from personal financial risk, increasing the confidence they have in conducting their operations. This agreement can also make fund distribution and tax handling within their LLC more concise and transparent.
Legal Considerations
Statute: Title 7, Chapter 16 – The Rhode Island Limited Liability Company Act.
