An Indiana single-member LLC operating agreement is a legal tool for sole proprietors to set up company ownership, procedures, and policies.
Although Indiana doesn’t mandate this document, not implementing it could expose personal assets to risks in case of business failure or litigation. Owners separate their assets from the business by using the agreement, reducing liability.
Step 1: Company Name
Fill in your LLC’s name. Choosing a unique, compliant name is paramount because it is the legal identifier for your business, setting it apart from other companies. It also forms the basis of your brand identity in the Indiana market.
For instance, your company is an urban gardening business, and you decide to name it “Bloom and Grow Gardens, LLC.”
Step 2: Date
Fill in the date you sign the agreement. The date serves as the point in time when the agreement comes into force, and all the provisions become legally binding.
Assume you’re signing the agreement on August 1, 2023, you’d write “August 1, 2023” in the document.
Step 3: Company and Member Information
Write the full name of the sole member of the LLC. This shows who owns the company and is responsible for its operations. Include also the LLC’s full legal name (as previously mentioned).
Here, you would enter “Sophia Martinez” as the sole member and “Bloom and Grow Gardens, LLC” as the LLC’s name. This makes it clear that Sophia Martinez is the owner of Bloom and Grow Gardens, LLC.
Step 4: Formation Date
Write down the LLC’s legal name and enter the date the Articles of Organization were filed with the State of Indiana. This confirms your LLC’s legal establishment.
Suppose the Articles of Organization for “Bloom and Grow Gardens, LLC” were filed on July 15, 2023, you’d enter “Bloom and Grow Gardens, LLC, filed on July 15, 2023.”
Step 5: Purpose
In the “Purposes and Powers” section, describe your LLC’s primary purpose or business activities.
For the purpose, you could say, “The primary purpose of Bloom and Grow Gardens, LLC is to provide urban gardening services, including garden design, plant selection, and maintenance for city dwellers in Indiana.”
Step 6: Authority
Write the sole member’s name in the Authority section. This emphasizes their power to make decisions and act on behalf of the LLC.
In this step, you would write “Sophia Martinez,” denoting that she has the authority to make business decisions for Bloom and Grow Gardens, LLC.
Step 7: LLC Name
Write the name of your LLC. This repetition emphasizes the business’s legal identity and reinforces the brand of the LLC. It ensures consistency in the use of the company name throughout the document.
In this section, you’d reiterate the company’s name as “Bloom and Grow Gardens, LLC,” reinforcing the official identity of the business entity.
Step 8: Signature and Printed Name
At the end of the document, sign your name on the “Managing Member’s Signature” line and print it below. This shows your acceptance of the terms and commitment to follow the operating agreement.
Lastly, you’d sign your name as “Sophia Martinez” on the Managing Member’s Signature line and print “Sophia Martinez” beneath it.
In summary, filling out a single-member LLC operating agreement for an Indiana-based company is essential for establishing a legally compliant business structure. This document helps protect personal assets and minimize liability. Although not legally required, completing the agreement with accurate information such as company name, formation date, purpose, and authority provides essential benefits and sets the foundation for a successful business.