This article guides Washington-based single-member LLC owners on how to fill out their operating agreement. The operating agreement establishes company procedures, policies, and protections for the owner’s private finances and assets. By filling in the required information, the owner can file the agreement with the state of Washington and enjoy tax benefits available to LLCs.
Step 1: LLC Name
Fill in the blank field with the name of your LLC to identify the company that the operating agreement is for. When you fill in your LLC’s name, you clarify which entity the operating agreement pertains to. This distinction is critical, especially if you have multiple businesses or if there are other businesses with similar names.
For example, if your LLC is named “John’s Bakery, LLC”, you would fill in the blank field with “John’s Bakery, LLC”.
Step 2: Company and Member Information
Fill in the blank field with the date when the agreement is being made and entered into, your full legal name and the name of your LLC. Writing the name and date in the LLC operating agreement is essential for establishing a clear timeline, confirming your role as the sole member and manager, and reinforcing the legal identity of your company.
For example, if the agreement is being made on April 25, 2023, you would fill in the field with “April 25, 2023” and of course the LLC name “John’s Bakery, LLC” and your full legal name.
Step 3: Formation of LLC
Fill in the blank fields with the name of the LLC as well as the date the Articles of Organization were filed with the State of Washington. This is crucial to establish a concrete record of your company’s formation. By specifying the name of your LLC and the date when the Articles of Organization were filed, you provide important context and legal foundation for the operating agreement.
For example, if your LLC is named “John’s Bakery, LLC” and the Articles of Organization were filed on January 1, 2023, you would fill in the respective fields with this information.
Step 4: Purposes and Powers
Fill in the blank field with the specific business activities or purposes of your LLC. This information allows you and any future stakeholders to understand the nature of the business and the activities it’s permitted to engage in.
For example, if your LLC operates a bakery, filling in the field with “to operate a bakery and sell baked goods” clearly outlines the company’s primary purpose.
Step 5: Authority
Fill in the blank field with the name of the sole member of the company. Filling in the Authority section with the name of the sole member establishes the person responsible for making decisions and managing the LLC. This clarity helps avoid confusion and ensures that all parties involved, including banks, suppliers, and potential partners, know who has the authority to act on behalf of the company.
For example, if David Miller is the sole member, filling in the field with “David Miller” confirms his authority within the company.
Step 6: Member Signature
Fill in the blank fields with the name of your LLC as well as the signature and printed name of the managing member. First, a signature demonstrates the managing member’s agreement to the terms and conditions outlined in the document. This makes the operating agreement legally enforceable and binding, ensuring the rights and responsibilities of the managing member are upheld.
For example, if your LLC is named “John’s Bakery, LLC” and the managing member is David Miller, you would fill in the fields with “John’s Bakery, LLC,” David Miller’s signature, and “David Miller” printed.
Conclusion
By following the steps outlined in this guide, Washington-based single-member LLC owners can easily fill out a comprehensive operating agreement. Including key details like the LLC name, member info, formation date, business purpose, member authority, and signature establishes a legally binding document customized for your company. With this agreement formalizing policies and procedures, LLC owners gain important tax and liability protections, avoiding personal responsibility for company debts and obligations. Filing the completed operating agreement with the state creates an official record to rely on as your business grows and evolves. An operating agreement lays the groundwork for your LLC’s success.
