A South Carolina single-member LLC operating agreement is a contract that sets forth the purpose and operations of an LLC with one (1) sole owner (the “member”). The document’s terms can establish the separation of the company from the owner to protect their personal assets from liability and double taxation. If an operating agreement is not created, the company’s internal operations will be ruled by state law, which may limit the member’s ability to dictate what happens if the company is dissolved, sold, or if they become incapacitated.
State law doesn’t require LLCs to create operating agreements. However, the agreement benefits the owner greatly, and may be required by financial institutions and investors.