Pharos Law Podcast–is a single member LLC required to have an operating agreement?

December 11, 2017 - Posted by: admin - In category:

taxes - No Responses

No blog post gets more views than the one about whether a single member LLC is required to have an operating agreement.  CLICK HERE to access that blog post.  It’s a valid question, and one could reasonably conclude that a sole owner of a limited liability company should not be required to have his or her own rule book to run the LLC.  However, there are many other aspects to this question that may not be evident at first glance. As with many things relating to the legal and business world, facts and circumstances dictate what is prudent in a given circumstance.  What is right for one person and that person’s business may not be correct for the commercial enterprise of another.

Spoiler–though not required, at least under the laws of the State of Utah and most other states, a single member LLC should have an operating agreement, as it can provide immediate and long-term benefits to the business and its owner(s).

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