An Alabama single-member LLC operating agreement is a legal document used by the owner of an LLC to establish the base rules and standards for how the company will be managed and financed. Operating agreements are optional in Alabama and can be created at any time, although the form is often drafted after the Certificate of Formation has been filed with the Secretary of State.

The information that is spelled out with the contract serves as an invaluable tool for obtaining outside investments and loans, as well as keeping the owner clear on the standards they employed regarding books and recordkeeping, dissolving the company, paying out distributions, and tax filing.