Updated on November 17th, 2021
The Virginia single-member LLC operating agreement is a form that allows the sole owner of a limited liability company to put in writing the framework of the company’s internal structure and the relationship between themselves and their entity. An operating agreement will include the purpose of the business, contribution and distribution schedule and amounts, type of management and the regulation thereof, and any other provisions that may be important for the specific company.
Having a single-member operating agreement in place is beneficial as it proves the entity is completely separate from the owner and their personal assets. Furthermore, if no agreement is in place, the default limited liability company rules set forth in the Virginia statutes will be applied, which may not be favorable or particularly relevant to the owner’s business.