A Delaware single-member LLC operating agreement outlines the company’s procedures and offers tax and protective benefits to the sole proprietor. While not mandatory, it helps shield personal assets from bankruptcy or litigation. Carefully review the document and consult an attorney if needed. Notarization is recommended since only the member will sign.
Step 1: Company Name
In this field, write the full, unique name of your Delaware Limited Liability Company (LLC). This name identifies your LLC in legal documents and contracts and must not infringe on existing company names.
For example, if your LLC is focused on selling eco-friendly products, you could name it “EcoFriendly Innovations, LLC.” Ensure the name is unique and not already used by another company.
Step 2: Date
Start by filling in the date when the operating agreement is being signed and becomes effective. This marks the formal establishment of the agreement and the responsibilities outlined within it.
Let’s say you are signing the agreement on April 10, 2023. You would fill in “April 10, 2023” in this field.
Step 3: Company and Member Information
Insert the name of the LLC you provided earlier for consistency and clarity throughout the document and write the full legal name of the sole member forming the LLC. This person assumes responsibility for managing and operating the LLC and its legal obligations.
Using the example above, write “EcoFriendly Innovations, LLC” in this field for consistency throughout the document. If the sole member forming the LLC is named John Smith, write “John Smith” in this field.
Step 4: Formation Date
In this field, provide name of your LLC once again and the date the LLC was officially formed by filing the Articles of Organization with the State of Delaware. This date signifies the legal beginning of the LLC.
Suppose the Articles of Organization were filed with the State of Delaware on March 1, 2023. You would enter “March 1, 2023” as the formation date.
Step 5: Purpose
Describe the primary purpose or business activity the LLC will engage in. Be specific so it’s clear what the LLC’s primary focus is, whether it’s retail sales, consulting services, or another business endeavor.
If the primary purpose of EcoFriendly Innovations, LLC is to sell eco-friendly products online, you could write, “To operate an online store selling eco-friendly products and promote sustainable living practices.”
Step 6: Authority
Reiterate the full legal name of the sole member with the authority to act on behalf of the LLC. This individual has the power to make decisions, sign contracts, and incur expenses for the company.
As John Smith is the only member, emphasize his name in this field: “John Smith, being the sole member, possesses the exclusive authority to represent and make decisions for the Company, including binding actions and incurring expenses on the Company’s behalf.”
Step 7: Company Name
Enter the name of your LLC one last time. With only one member, it may seem repetitive, but it eliminates potential confusion between the LLC entity and the individual member. Delineating the LLC name reinforces it is the company entering the agreement.
Enter one last time EcoFriendly Innovations, LLC.
Step 8: Managing Member’s Signature
The sole member should sign here to formally agree to the terms of the operating agreement and acknowledge their role as the managing member of the LLC.
John Smith would sign his name in this space to confirm his agreement to the terms of the operating agreement and acknowledge his role as the managing member of EcoFriendly Innovations, LLC.
To wrap up, completing a single-member LLC operating agreement for a Delaware-based company is a vital process in defining the operational structure, legal protections, and responsibilities of the LLC and its sole member. By diligently providing the required information and signing the document, the sole member confirms their commitment to adhering to the terms of the agreement and managing the business effectively.