Updated on November 6th, 2021
A Louisiana single-member LLC operating agreement is used by the owner of a newly created limited liability company to establish its internal operations and framework. The agreement is a comprehensive document describing financial regulations, operating procedures, and the provisions that distinguish the company as a legal entity separate from its owner. The agreement provides the necessary legitimacy needed when conducting business with financial institutions or investors.
In addition to governing the LLC, the form is a key asset in the legal protection of the owner should the company be subjected to any litigation. LLCs have the option to be formed without an operating agreement, although it is not recommended.