Updated on November 3rd, 2021
A Kentucky single-member LLC operating agreement details the framework and inner operations of a limited liability company owned by a single individual. The agreement is normally created during the company’s formation to establish the specifics of how the company is structured and the policies that will govern its activity. Financial institutions can be provided an operating agreement as evidence that the LLC is owned by the owner, thus enabling them to open business accounts and take out loans.
LLCs are not required by law to draft an operating agreement; however, it is advisable as without it, the owner may be left legally responsible for the company’s debts, obligations, and other liabilities.