A Georgia single-member LLC operating agreement is an optional legal tool for sole proprietors to establish ownership, procedures, and policies. While not required, it protects personal assets from business liabilities and offers tax benefits.
Step 1: Company Name
The blank field at the beginning of the document is where you will enter the name of your LLC. Choosing an official name for your LLC is crucial, as it legally identifies your business and distinguishes it from others. Picking a unique, compliant name establishes your company’s brand and identity.
You’re starting a photography business and decide to name your LLC “Peach State Portraits, LLC”. This name will be the official, legal identity of your LLC.
Step 2: Date
Fill in the next blank space with the date you are signing the agreement. Including the date you sign the agreement formally activates the contract on that day. This establishes when the terms become legally binding.
For instance, if you’re signing on June 1, 2023, write “June 1, 2023”.
Step 3: Company and Member Information
In the following line, write your full name or the name of the person who is the sole member of the LLC and the full legal name of the LLC. Identifying the sole member and LLC name specifies who owns the company and is accountable for operations. This links the business to the individual member.
Let’s say it’s “Alex Johnson”, and then again mention the name of your LLC, “Peach State Portraits, LLC”.
Step 4: Formation Date
Fill in the name of your LLC and the date the Articles of Organization were filed with the state of Georgia. Stating the formation date documents the exact date your LLC was legally created with the state. This provides proof of establishment.
Assuming you filed your Articles of Organization with Georgia on July 1, 2023, you would list “Peach State Portraits, LLC” followed by the date, “July 1, 2023”.
Step 5: Purpose
In this section, fill in the blank space with a detailed description of your LLC’s primary purpose or business activities. Defining the company’s purpose and activities specifies the permitted scope of your LLC’s business dealings. This outlines what the company was created to do.
“The purpose of Peach State Portraits, LLC is to provide professional photography services, including portrait, event, and commercial photography, to clients across Georgia.”
Step 6: Authority
In the “Authority” section, enter your name or the sole member’s name. Granting the sole member decision-making authority empowers them to act on the LLC’s behalf. This gives the legal right to direct the company.
Here, you enter your name, “Alex Johnson”, confirming that you have the authority to make decisions on behalf of the LLC.
Step 7: LLC Name
Repeat the name of your LLC one more time in this line. Repeating the official name reinforces the identity and brand of the LLC. This further establishes the business’ legal title.
You will enter the name of your LLC once more, “Peach State Portraits, LLC”.
Step 8: Signature and Printed Name
At the end of the document, sign the agreement and print your name below it. Signing the agreement makes it fully executed and binding. Printing your name formalizes your identity as the sole member committing to the terms.
You will then sign your name, “Alex Johnson”, and print it underneath to formally agree to the operating agreement’s terms.
Conclusion
In summary, creating a single-member LLC operating agreement in Georgia provides key legal protections for a sole proprietor’s new business. Though optional, having one establishes the LLC’s name, effective date, sole member, formation details, purpose, decision-making authority, and the member’s commitment to the terms. With this simple agreement, a sole proprietor can define their business structure and limit personal liability. For any Georgia resident starting an LLC, an operating agreement is highly recommended.
