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An LLC operating agreement is not required in Indiana, but is highly advisable. This is an internal document that establishes how your LLC will be run. It sets out the rights and responsibilities of the members and managers, including how the LLC will be managed.
An Indiana single-member LLC operating agreement is a legal document that has been designed for use by a sole proprietor. The document would be provided so that the sole owner may establish company ownership along with business establishment-specific procedures and policies and more.
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.
Unlike your LLC Formation Agreement, you are not required to file an operating agreement with the State of Indiana. However, as an internal document, a copy should be kept with your records. The operating agreement names the members of the company and spells out what percentage, or membership interest, they own.
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