A Tennessee single-member LLC operating agreement establishes a framework for an individual business owner’s limited liability company. Even though this agreement isn’t a legal requirement in Tennessee, a sole business owner can use it to obtain protection against personal liability if legal matters arise.
Because this agreement creates a clear separation between personal and business affairs, poor business performance won’t affect the owner’s personal assets. The creator of this agreement should outline the company’s management, financial strategies, and decision-making protocols. This way, they can have control over how their company operates and won’t default to the state’s standards.
Statute: TN Code § 48-249-203.