A California single-member LLC operating agreement is a legal contract that regulates the business activities, financial decisions, and internal management of an LLC with one (1) member. It describes how the company will distribute profits, report taxes, maintain records, and it contains instructions for the potential disability or death of the business owner. An operating agreement also defines the legal separation between the entity and the owner, thus limiting the latter’s liability.

California law requires an LLC to implement an operating agreement upon its formation, whether established in writing, orally, or implied.