An operating agreement is a valuable legal document that records a company’s operations, purpose, and addresses financial and legal issues. Creating one is highly recommended for single-member LLCs in Minnesota.

Step 1: Company Name

Enter your LLC’s full registered legal name. This identifies the specific business entity governed by the agreement. Accurately writing the name reinforces the agreement’s enforceability if disputes arise.

If your company is called “Jones Consulting, LLC”, write “Jones Consulting, LLC”.

Step 2: Date

Record the date the agreement is signed. This pinpoints when the terms become legally binding, which is important for enforcing rights.

If signing the agreement on July 15, 2023, write “July 15, 2023”.

Step 3: Company and Member Information

Enter the sole member’s full legal name. This identifies the individual with company ownership and decision-making authority, ensuring they can legally enter the agreement.

If the sole member is named “Michael Smith”, write “Michael Smith”.

Step 4: Formation of LLC

Enter the LLC name and the date your LLC formed by filing Articles of Organization. This proves it is legally recognized under state law as a separate entity.

If your LLC was formed on May 5, 2022, write “May 5, 2022”.

Step 5: Purpose

Describe the LLC’s primary activities and objectives. This clarifies business goals and minimizes disputes about unclear objectives.

If you offer IT consulting, write “Providing IT consulting services”.

Step 6: Authority

Name the sole member with company decision-making authority. This creates a transparent chain of command.

If the sole member is Michael Smith, write “Michael Smith has complete authority for this LLC.”

Step 7: Signature

The sole member should enter the LLC name and sign their full legal name, indicating agreement with the terms. Print clearly after signing to ensure legibility, accuracy, and enforceability.

Sign with your usual signature, then print “Michael Andrew Smith”.

Conclusion

Carefully completing each section of a single-member LLC operating agreement in Michigan is vital to establish an enforceable document that secures the member’s interests and minimizes liability. With a meticulous agreement in place, the LLC can be positioned for stability and growth.