An Arkansas single-member LLC operating agreement is made by the sole member (owner) of an LLC to define the entity’s structure and establish rules for the internal management and operation of the company. An operating agreement legitimizes the business in the eyes of investors and banks, allowing the owner to more successfully obtain loans or create company bank accounts. If the entity is sued, the agreement shields the owner from personal liability and protects their finances and other assets from creditors.

Although it is not a legal requirement, single-member LLCs should execute an operating agreement immediately after filing the Certificate of Organization with the Secretary of State.