Updated June 30, 2022
A Colorado single-member LLC operating agreement is a legal document that establishes operating terms between the owner and the business itself. The state of Colorado does not require an agreement, however, it is highly recommended that all businesses have one in place, no matter what the size of the business. Without this document in place, any member of a business may be left vulnerable to the consequences of litigation or business failure, on a personal level.
This completed document, creates a legal separation between the member’s personal assets and accounts, from the business, keeping the business responsible for business debts. This same document will provide tax benefits.