Sole Proprietor Operating Agreement Template 2026

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An operating agreement is a key document used by LLCs because it outlines the business financial and functional decisions including rules, regulations and provisions. The purpose of the document is to govern the internal operations of the business in a way that suits the specific needs of the business owners.
Even if youre the sole owner of your LLC, an Operating Agreement is essential for clarifying ownership, outlining decision-making authority, documenting profit allocation, and establishing procedures for business continuity or dissolution.
LLC Operating Agreement Free Templates This free LLC operating agreement was designed as a general template that can work in any state to help strengthen your business identity. (We also offer state-specific operating agreements below.) It can be single-member or multi-member.
Operating agreements spell out a companys operational and financial rules and provisions. Think of them as a how-to guide for how the business should be operated and managed. Specifically, an operating agreement should include: Portion of members ownership, often expressed as ownership percentages.
The good news is that youre free to write your operating agreement in any way that you wish. There arent any legal requirements regarding what you must include in the agreement. Drafting the best operating agreement for your LLC simply means tailoring it to your businesss specific needs.
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If there is no operating agreement, distributions have to be shared equally. Many states also have default rules on the sharing of profits and losses. Again, that default rule may or may not reflect what the members want.

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