A North Dakota single-member LLC operating agreement outlines the structure and policies of a limited liability company that has one (1) sole owner. The company owner (the “member”) executes the legally binding agreement to establish the LLC’s ownership, purpose, rules, distribution payments, taxation, and record-keeping procedures. Using this contract, the member can separate their personal and business assets, protecting them against company debts, obligations, and liabilities.
State law doesn’t require LLCs to create operating agreements. However, without one, the owner will not be able to customize the LLC’s policies, subjecting them to state laws that may not suit their specific needs.