A Mississippi single-member LLC operating agreement gives the owner of a limited liability company the ability to set their own rules for how the company will run internally. Without the execution of this agreement, the state’s default LLC laws will govern the company, which is not always beneficial to the owner. The operating agreement will describe the owner’s relationship to the entity including capital contributions/distributions, their rights and powers as the sole member, the limitation of liability, and the manner in which the entity will be taxed.
Though not legally required in Mississippi, the execution of an operating agreement is beneficial to owners and is a recommended practice for all LLCs. Should the company wish to secure financial assistance, many lenders require an operating agreement to be furnished with the application for a loan.