A South Carolina single-member LLC operating agreement is a legal contract for sole business owners, allowing them to record their company’s internal governance, operations, and purpose. While the state doesn’t require sole business owners to complete it, this document is key in differentiating the owner’s liabilities and assets from the company’s.
When they create this document, sole business owners protect themselves from potential double taxation and personal liability if their companies experience financial hardships. In addition to financial protection, this agreement also gives them more freedom when it comes to deciding how they handle their company’s operations and dissolution (if it ever becomes necessary).
Statute: SC Code of Laws § 12-2-25.