A Colorado single-member LLC operating agreement outlines the owner’s and business’s operational terms. Although not legally required, protecting personal assets from business liabilities and providing tax benefits is highly recommended.
Step 1: Company name
This section requires the accurate legal name of your Colorado LLC. This ensures the correct legal identification of your company.
For instance, if your business is known as “Mountain Peaks Consulting,” write “Mountain Peaks Consulting, LLC.”
Step 2: Date
Here provide the date you, the sole member, sign the agreement in the blank space, marking the formal commencement of the agreement.
For example, if signing on July 10, 2023, input “July 10, 2023” or “10th day of July 2023.”
Step 3: Company Information
Write the complete legal name of the LLC (as previously mentioned) along with your name as the single member. This identifies the individual in charge of the company’s operations and decision-making, accurately representing the relationship between the business and its owner.
For example, if your name is John Smith, write “John Smith” in the blank space.
Step 4: Formation Date
First write the name of the LLC, and then add the date when your LLC’s Articles of Organization were filed with the State of Colorado, denoting the formal initiation of your business.
For instance, if the filing took place on June 1, 2023, specify “Mountain Peaks Consulting, LLC on June 1, 2023” or “Mountain Peaks Consulting, LLC on the 1st day of June 2023.”
Step 5: Purposes of the Company
In the blank space, describe your company’s main activities or services concisely. This section outlines the primary business purpose(s) of your LLC.
For example, if your LLC offers business consulting services, write, “To provide consulting services to small businesses.”
Step 6: Authority
Fill in your name in the blank space, indicating that you, as the sole member, have the authority and power to act on behalf of the company. This emphasizes your role as the decision-maker and the person responsible for the company’s actions.
Using our example, write “John Smith, as sole member of the Company, has sole authority and power to act for or on behalf of the Company.”
Step 7: LLC Name
Write the name of your LLC one last time. From a legal perspective, restating the formal LLC name promotes formality and ensures the operating agreement is directly and officially linked to the correct business entity.
Write “Mountain Peaks Consulting, LLC” at the end before signatures.
Step 8: Managing Member’s Signature
Sign your name on the designated line to confirm your agreement to the terms and conditions outlined in the document.
Step 9: Managing Member’s Name
Print your full name on the line provided to clarify who signed the document.
Print “John Smith” on the name line.
Conclusion
In summary, a single-member LLC operating agreement for a Colorado-based company is vital for protecting the owner’s assets and defining the business’s terms of operation. By following the outlined steps, the resulting agreement will be thorough and legally compliant, creating a solid foundation for business growth.
