An Ohio single-member LLC operating agreement allows the sole owner of a limited liability company to record the rules and procedures of their business. Due to the fact that ownership is not shared amongst multiple members, the terms and structure of a single-member agreement are simpler and can cater specifically to the individual’s needs. If an operating agreement isn’t executed, the LLC will be subject to state law, which may not align with the owner’s best interests.
Although an operating agreement isn’t legally required when creating an LLC, it may be necessary as proof of ownership when opening a bank account or completing certain business activities. Furthermore, the terms of the contract can protect the owner from liability by separating their personal and business assets.