Updated on November 17th, 2021
A Vermont single-member LLC operating agreement is a document executed by the sole member of a limited liability company to create provisions that will regulate certain aspects of the entity. Important areas to cover are the purpose of the LLC, capital contributions, distribution of losses and profits, taxes, management style, and the possibility of dissolution.
While this document does not need to be filed with the Secretary of State nor, for that matter, is it a legal requirement that LLCs draft one, having an operating agreement can be of immense value. Banks might ask for one before approving a business account; potential investors might wish to review it before providing funding; and, if the member is unable to fulfill their duties due to illness or other impediment, it can list a designated representative to act in their stead.