An Alabama single-member LLC operating agreement is a comprehensive roadmap for a sole proprietor to detail their company’s daily activities, ownership hierarchy, officer positions, and other crucial aspects. This document enables individuals to set up transparent business practices and methodically safeguard their interests.
Step 1: Company Name
In the space provided, write the full legal name of your LLC. This name is crucial as it represents your business legally and for tax purposes.3
For instance, if your LLC is named “John’s Auto Repair, LLC,” you would fill in that name.
Step 2: Date
Enter the date when you, as the sole member, sign the Operating Agreement to mark the official commencement of the Agreement.
For example, if you signed the Agreement on April 4, 2023, you would write “April 4, 2023” or “4th day of April 2023.”
Step 3: Company information
Include the LLC’s full legal name (as previously mentioned) and your name as the sole member. This identifies the decision-maker responsible for the company’s operations and ensures the Agreement correctly represents the relationship between the company and its members.
Continuing with our example, you would enter the company name “John’s Auto Repair, LLC” and your name John Smith.
Step 4: Company Name
Write down the LLC’s legal name.
Repeat the name you chose for your company “John’s Auto Repair, LLC”,
Step 5: Formation Date
Write down when the Articles of Organization were filed with the State of Alabama. This date is significant because it signifies the official establishment of your LLC.
For instance, if you filed your Articles of Organization on March 1, 2023, you would write “March 1, 2023” or “1st day of March 2023.”
Step 6: Purposes of the Company
In the blank space, briefly describe the company’s primary activities or services.
For example if the purpose of your company is to provide auto repair and maintenance services including brake repairs, engine diagnostics, oil changes, and collision repairs you would enter that.
Step 7: Authority of the Company
Insert your name in the space provided, indicating that you, as the sole member, possess the authority and power to act on the company’s behalf. This clarification helps establish who is accountable for decision-making and action-taking within the LLC.
Here you enter your name as John Smith.
Step 8: Company Name
Provide the company name for the last time.
Enter the name ‘’John’s Auto Repair, LLC’’.
Step 9: Name and Signature
As the sole LLC member, print your name and sign it on the line provided to show your Agreement with the terms stated in the Operating Agreement. This signature formalizes the Agreement and exhibits your dedication to running the business according to the outlined rules.
Finally, enter your name as John Smith and your signature.
Conclusion
Don’t leave your new sole proprietorship’s direction up to chance – put yourself in the driver’s seat with our convenient single-member LLC operating agreement template. Simply download this free document to establish official guidelines tailored for your Alabama company’s success!
