As a valuable legal document, an operating agreement records your company’s primary operations and purpose while addressing financial and legal issues for single-owner businesses. Creating an operating agreement is highly recommended for LLC owners in Michigan.

Step 1: Company Name

Clearly stating your LLC’s full registered legal name is vital. This identifies the specific business entity governed by the agreement, eliminating potential confusion that could undermine the document’s legal standing. Accurately writing the name reinforces the agreement’s enforceability if disputes arise.

If your company is called “ABC Creations, LLC”, write “ABC Creations, LLC”.

Step 2: Date

Precisely record the date the agreement is signed. This pinpoints when the terms become legally binding, crucial for enforcing rights if unpredictable events occur.

If you are signing the agreement on January 1, 2023, write “January 1, 2023”.

Step 3: Company and Member Information

The sole member’s full legal name and company name are essential, as these identify the individual with company ownership and decision-making authority. This ensures the signer can legally enter the agreement.

Continuing with our example you need to enter  “ABC Creations, LLC” and the sole member is named “John Smith”, write “John Smith”.

Step 4: Formation of LLC

Note once again the name of your LLC and the exact date your LLC was formed by filing Articles of Organization. This proves your LLC is legally recognized under state law as a separate business entity. Including this aligns with state requirements, solidifying your LLC’s legal status and protections.

If you filed with the state on March 15, 2023, write “March 15, 2023”.

Step 5: Purpose of the Company

Thoroughly describe your LLC’s primary activities and objectives. This clarifies business goals, guiding decisions and keeping the company focused. Outlining the purpose establishes a solid foundation for future growth and minimizes disputes about unclear objectives.

If you offer graphic design services, write “Providing graphic design services for clients”.

Step 6: Authority

Name the sole member with exclusive company decision-making authority. This creates a transparent chain of command, streamlining operations and reducing confusion about who can legally represent the LLC.

If the sole member is John Smith, write “John Smith has complete authority to make decisions on behalf of this LLC.”

Step 7: Member Signature

The sole member should enter the LLC name one last time and sign their full legal name, indicating agreement with the terms to make them legally binding. Print the name clearly after signing to ensure legibility, accuracy, and enforceability. This minimizes disputes about identity and commitment.

Sign with your usual signature, then print “John Adam Smith”.


Carefully completing each section of a Michigan single-member LLC operating agreement is vital for sole business owners to establish a legally enforceable document. By accurately providing the company name, member details, filing date, business purpose, authority, and signature, LLC proprietors can create an agreement that secures their interests and minimizes liability. With a meticulous operating agreement in place, single-member LLCs can position their companies for stability and growth.