LLC Operating Agreement (Single-Member) โ Plain-English Summary
Operating agreement for a one-owner LLC: ownership, management, capital, liability protection, tax treatment and succession.
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Plain-English Summary: explains each section of the Full version. Sign it alongside the Full version, or use it on its own as a summary sheet.
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What the sections mean (plain English)
- FORMATION
- Basic facts about the business: where it is registered and its official address and agent.
- NAME, OFFICE AND AGENT
- What the person acting for someone else is allowed to do.
- PURPOSE
- Explains why the parties are entering into this document.
- CAPITAL
- What each owner puts in (money, property or work) to get started.
- MANAGEMENT
- Who makes decisions and how votes work.
- LIMITED LIABILITY AND SEPARATENESS
- Caps or limits on what one side can owe the other.
- INDEMNIFICATION
- Who pays if a third party sues because of the other side's actions.
- DISSOLUTION
- How an owner leaves or the business winds down.
- GOVERNING LAW
- Which state's law applies and where any lawsuit must be filed.
- ENTIRE AGREEMENT; AMENDMENT
- How this document can be changed later.
- DISPUTE RESOLUTION
- How disagreements get handled before anyone goes to court.
- SEVERABILITY
- If a court strikes one clause, the rest still counts.
- NOTICES
- How the parties must officially contact each other.
- COUNTERPARTS; ELECTRONIC SIGNATURES
- E-signatures are valid and each party can sign separately.
- Optional clauses
- Extra terms you can switch on or off in step 3. Leave them off if unsure.
How to use this LLC Operating Agreement (Single-Member) template
- Answer the guided questions. Your name and company fill in automatically from your profile.
- Pick the governing state and complete the [STATE-SPECIFIC] blanks. Switch optional clauses on or off.
- Check the live preview, then create the document. Signature, initial and date fields are placed for each party.
- Review the fields and send. Each party signs in order, and everyone gets the signed PDF.
Frequently asked questions
Is this LLC Operating Agreement template free?
Yes. You can fill it in, download it and send it for electronic signature with a free E-Sign Auto account.
Is an electronically signed LLC Operating Agreement legally binding?
In the U.S., the federal ESIGN Act and state UETA laws generally give e-signatures the same effect as handwritten ones. Check your state's rules.
Does this template work in my state?
It is a generic, state-neutral starting point. Pick your governing state and complete every blank marked [STATE-SPECIFIC]. This template is not legal advice; consult a licensed attorney in your state.
Who signs, and in what order?
Member. Each signer gets a secure link in that order, with signature, initial and date fields already placed.