Updated on November 17th, 2021
A Minnesota single-member LLC operating agreement is used to detail how the sole owner of a limited liability company plans to operate their business. This agreement helps separate the business entity from its owner, thus limiting the owner’s personal financial liability. The document also serves to supersede the default rules set out in the Minnesota Limited Liability Company Act and serves to give its member the ability to manage the company as they wish.
The operating agreement is not deemed a requirement by the state; however, the benefits it provides its owner makes the execution of the document a highly recommended practice.