A Delaware single-member LLC operating agreement is used to relay the terms that govern the activity and internal affairs of an LLC. The contract provisions set forth the company’s ownership, tax structure, business purpose, finances, and policies for accounting and recordkeeping. In addition to its organizational features, an operating agreement proves separation between the entity and the owner, preventing creditors from going after the owner’s personal bank accounts and other assets.
Delaware statute § 18-201(d) specifies that an operating agreement shall be made or otherwise exist before, after, or at the time the LLC files its formation documents. The agreement needn’t be in writing, although it is strongly recommended.