An Idaho single-member LLC operating agreement is created by the owner of a new limited liability company to detail how their company will operate and the rules that will govern its activities. In addition to having a document that states the company’s inner workings, the key benefit of an operating agreement is that it sets in place the provisions that indemnify the owner from liability and establish the LLC as a separate entity.

State law does not mandate LLC owners to create an operating agreement, although banking institutions or third parties may require the form if the owner is making inquiries for loans or investments.