A Kentucky single-member LLC operating agreement is a voluntary but strongly recommended document for sole proprietors. It outlines the business’s policies, procedures, and activities. Although not legally required, implementing this agreement can protect the owner’s personal and financial assets from potential litigation and liability for business debts.
Step 1: Company Name
Fill in your unique LLC name here. This establishes your business’s identity and helps distinguish it from other companies.
For example, if you’re starting a Kentucky-based yoga studio, you could use “PeacefulPose Yoga Studio, LLC.”
Step 2: Date
Enter the date you’re signing the agreement. This sets the agreement’s effective date, marking the start of your LLC’s operation under its provisions.
For example “April 6, 2023.”
Step 3: Company and Member Information
In addition, write the company name and your name as the sole member. This clarifies your ownership and role within the company.
In our example you need to enter “PeacefulPose Yoga Studio, LLC” and if your name is “Emily Johnson” you would enter that.
Step 4: Formation Date
Include the date you filed the Articles of Organization with the State of Kentucky. This helps track the legal establishment of your LLC.
For instance, “February 28, 2023.”
Step 5: Purposes
Specify your LLC’s primary goal. This field outlines your business’s primary activities and objectives. This also ensures your LLC has the flexibility to engage in any lawful business activities.
In our example, you can write, “To operate a yoga studio offering various styles of yoga classes, workshops, and events.”
Step 6: Authority
Write your name as the sole member with authority to act on the company’s behalf. This indicates that you have the power to make decisions, enter contracts, and manage the company.
In our example you would write “Emily Johnson.”
Step 7: Managing Member’s Signature and Print Name
At the end, you need to enter the name of your LLC and sign and print your own name as “Emily Johnson” and print it below the signature line. This signifies your acceptance of the agreement’s terms and conditions. Remember to sign in front of a notary public to authenticate the document appropriately.
After reviewing each section of your Kentucky single-member LLC operating agreement and making any necessary modifications, take the vital final step of formally executing the document to give it legal force. Be sure to sign your name in the presence of a witness and have the signature notarized.
This proper execution process, in accordance with Kentucky regulations, empowers your operating agreement to shape your LLC’s structure, policies, procedures and liability protections. With this tailored document in place and properly signed, you can operate your business strategically and with the confidence that your personal assets have an added layer of protection.