Updated November 23, 2021
A South Dakota single-member LLC operating agreement is a legal document that would be used by sole owners of any business, so that they may properly establish the businesses, policies, and procedures that are vital to the proper operation of any business. This document is no prerequisite to having the ability to operate a business within the state, however, if the document is not utilized, the owner could face serious repercussions, if they are ever presented with negative legal claims against their business.
Should the owner choose to implement the document, they are stating that their financial interests are separate from those of the company and will, therefore, have the ability to legally protect their private financial and personal assets. The placement of the form will also provide tax benefits that will not be available without completion and filing of this document.