An Iowa single-member LLC operating agreement is a legal document created by the founder of a limited liability company to establish its management and structure. Provisions such as owner liability, company dissolution, company purpose, taxation, and capital distributions are explained and governed through an operating agreement. While the form is nonmandatory, owners are strongly encouraged to create one as the document will provide legal protection against legal and financial liability.

In cases where an LLC does not choose to create an operating agreement, the LLC will be governed by default state regulations; therefore it is recommended for owners to create an operating agreement to organize their business in a manner that meets the company’s specific needs.