Updated on November 17th, 2021
A Texas single-member LLC operating agreement is a written document outlining the terms and regulations of a limited liability company consisting of a sole member. Whereas the Articles of Organization are filed with the Secretary of State to register the entity as an LLC, the operating agreement is used to establish important the internal affairs of the company in writing.
Provisions found in an operating agreement include the business’s purpose, how contributions/distributions will be made, how management is set up, and what will transpire if the entity is dissolved. An operating agreement does not need to be filed with the Secretary of State like the Articles of Organization.