A Pennsylvania single-member LLC operating agreement outlines the rules and framework of a limited liability company (LLC) that has one sole owner. The contract will establish the company’s operations, including its purpose, accounting, taxation, ownership, and the distribution of profits. By creating an operating agreement, the company owner can determine how their business will be handled and what will occur if the LLC is dissolved, terminated, or sold.
Although it is not technically required for LLCs to have an operating agreement, the document is often needed to open bank accounts or obtain loans and investors. Furthermore, the agreement’s terms can solidify the owner’s liability protection.