A Michigan single-member LLC operating agreement provides the sole owner of a limited liability company a way to customize its internal operating structure and to clearly establish it as an LLC. In the absence of the agreement, state default laws will govern how the company handles certain situations, for example, what would happen should the owner become incapacitated or deceased. The document also details essential information such as proof of ownership, business purpose, and the limitation of the single member’s liability.

Although the state does not require an operating agreement to be executed, it is a recommended practice as it helps protect the owner from company debt and litigation.