California Single Member LLC Operating Agreement Template

A single-member LLC (Limited Liability Company) is a business structure that provides personal liability protection for its owner. In California, a single-member LLC is formed by filing Articles of Organization with the California Secretary of State. However, a well-drafted operating agreement is essential to outline the ownership, management, and operational aspects of the business. In this article, we will discuss the importance of a single-member LLC operating agreement in California and provide a template for you to use.

A single-member LLC operating agreement is a written document that outlines the terms and conditions of the business. It serves as a roadmap for the owner and helps to prevent disputes and misunderstandings. The agreement should include the following essential elements:

1. Business Purpose

The operating agreement should clearly state the purpose of the business. This will help to define the scope of the business and ensure that all parties involved are on the same page.

2. Ownership Structure

The agreement should outline the ownership structure of the LLC, including the percentage of ownership and the rights and responsibilities of the owner.

3. Management Structure

The operating agreement should define the management structure of the LLC, including the roles and responsibilities of the owner and any other managers.

4. Capital Contributions

The agreement should outline the capital contributions required from the owner, including the amount and timing of the contributions.

5. Distribution of Profits and Losses

The operating agreement should define how profits and losses will be distributed among the owners.

6. Voting Rights

The agreement should outline the voting rights of the owner, including any restrictions on voting power.

7. Dispute Resolution

The operating agreement should include a dispute resolution clause that outlines the process for resolving disputes between the owners.

8. Termination

The agreement should outline the circumstances under which the LLC can be terminated, including the process for winding up the business.

A well-drafted single-member LLC operating agreement in California can help to prevent disputes and ensure the success of your business. It is essential to have a lawyer review the agreement to ensure that it meets the specific needs of your business.

California Single Member LLC Operating Agreement Template

Below is a template for a single-member LLC operating agreement in California:

ARTICLE I: BUSINESS PURPOSE

The purpose of this Limited Liability Company (the "Company") is to engage in any lawful business or activity for which a limited liability company may be organized under the California Revised Limited Liability Company Law.

ARTICLE II: OWNERSHIP STRUCTURE

The Company is owned by [Name of Owner] (the "Owner"), who owns [Percentage of Ownership]% of the Company.

ARTICLE III: MANAGEMENT STRUCTURE

The Owner shall manage the business and affairs of the Company.

ARTICLE IV: CAPITAL CONTRIBUTIONS

The Owner shall contribute [Amount of Capital Contribution] to the Company.

ARTICLE V: DISTRIBUTION OF PROFITS AND LOSSES

Profits and losses of the Company shall be distributed to the Owner in accordance with the Owner's percentage of ownership.

ARTICLE VI: VOTING RIGHTS

The Owner shall have [Number of Votes] votes in the Company.

ARTICLE VII: DISPUTE RESOLUTION

Any disputes between the Owner and the Company shall be resolved through [Dispute Resolution Process].

ARTICLE VIII: TERMINATION

The Company may be terminated upon [Circumstances of Termination].

This operating agreement is made and entered into on [Date] by and between [Name of Owner] (the "Owner") and [Name of Company] (the "Company").

IN WITNESS WHEREOF, the parties have executed this operating agreement as of the date first above written.

Signed:

[Name of Owner]

[Name of Company]

This operating agreement is a sample and should be reviewed and customized to meet the specific needs of your business. It is essential to have a lawyer review the agreement to ensure that it meets the specific needs of your business.

A well-drafted single-member LLC operating agreement in California can help to prevent disputes and ensure the success of your business. It is essential to have a lawyer review the agreement to ensure that it meets the specific needs of your business.