The Single Member LLC Operating Agreement Must Be in Writing

For many solo LLC business owners, it is often forgotten to officially adopt a set of rules and governance processes for the limited liability company.  This is a big mistake as it is well known that the solo entrepreneur should adopt a written single member llc operating agreement as independent evidence that he is recognizing his business entity as one separate and apart from himself.  This is essential if the business ever gets into trouble.  If a lawsuit is filed, the attorney for the other side may look to pierce the LLC veil which means trying to find the solo owner personally liable for the issue in question.  By ensuring that the single member LLC follow formalities such as adopting a single member LLC operating agreement, this will help ward off such allegations and protect the solo owner personally.