A North Carolina single-member LLC operating agreement is a legal document separating the owner from the business. While not required for conducting business in the state, implementing this document protects the owner’s personal assets and finances. Without it, the owner could be liable for both personal and business debts. If the language is unclear, consulting an attorney for assistance is recommended.
Step 1: Company Name
Fill in your LLC’s name, taking care to ensure that it is unique, memorable, and complies with North Carolina naming requirements. Accurately capturing the legal name creates a stronger connection between the entity and operating agreement. It reduces confusion, fulfills legal needs, and lets the business build brand recognition.
For example, if you’re starting a photography business focused on capturing special moments, you might choose a name like “Captured Memories, LLC.”
Step 2: Agreement Date
Carefully enter the date you sign this operating agreement. Doing so establishes a clear timeline for the agreement’s validity and provides a point of reference for future matters.
For instance, if you’re signing on June 10, 2023, you should write “June 10, 2023.”
Step 3: Company and Member Information
In these fields it’s essential to include both your LLC’s name and your name as the sole member executing the agreement. This information is vital for identifying the parties involved in the contract and clarifying their respective roles within the LLC.
For example, if your name is Adam Charles and your LLC is “Captured Memories, LLC,” you should write “Captured Memories, LLC” and “Adam Charles” in the designated fields.
Step 4: Formation of LLC
Here, you’ll need to provide your LLC’s name and the date the Articles of Organization were filed. This information is crucial for documenting the formation of your LLC and complying with North Carolina state regulations.
For instance, if you filed the Articles for “Captured Memories, LLC” on April 2, 2023, write “Captured Memories, LLC” and “April 2, 2023” in the corresponding spaces.
Step 5: Purposes and Powers
In this section, you must describe your LLC’s primary purpose(s) and powers. Be specific and clear when detailing your LLC’s business activities. A clear scope establishes the permitted activities and boundaries of the LLC’s business dealings. This provides clarity on what the LLC can legally engage in.
Suppose your photography business aims to capture special moments and offer personalized photo packages. In that case, you might write, “To provide exceptional photography services, create customized photo packages, and ensure a memorable experience for clients.”
Step 6: Authority
Make sure to include your name in this part of the document to confirm your authority as the sole member of the LLC. This statement solidifies your position as the decision-maker and the person responsible for taking action on behalf of the company.
If your name is Adam Charles, you should write, “Adam Charles, as the sole member of the Company, has sole authority and power to act for or on behalf of the Company…”
Step 7: LLC Name
Reenter the name you chose for your LLC for the last time. Repetition further cements the specific LLC as the legal entity bound by the full terms laid out in the document.
Enter “Captured Memories, LLC” here.
Step 8: Managing Member’s Signature and Print Name
Finally, sign and print your name at the end of the document to confirm your agreement to the terms and conditions outlined in the Sole Member Operating Agreement. Your signature is legally binding, signifying your commitment to adhere to the agreement and abide by the laws and regulations governing your LLC.
If your name is Adam Charles, sign the document and print “Adam Charles” below your signature to complete the process.
Conclusion
Sealing your North Carolina single-member LLC with an ironclad operating agreement isn’t just recommended—it’s an absolute must for launching your business while keeping personal assets safe. Follow this clear guide to legally fortify your enterprise’s foundations. Do it right from day one, and you’ll be shielded from financial disaster when the storms hit.
