Updated on October 15th, 2021
A Colorado single-member LLC operating agreement is used to document the function, rules, and operating procedures of an LLC that is owned and operated by one (1) individual. It serves as a roadmap for how the company will run, relaying provisions that cover recordkeeping, financial management, income tax filing, and company dissolution. On top of that, an operating agreement proves that the owner’s personal assets, such as bank accounts and real estate, may not be targeted by creditors if the company gets sued.
Note: While all LLCs can benefit from an operating agreement, drafting one is not mandatory in Colorado.