Updated July 22, 2023
A Texas single-member LLC operating agreement is a legal document that is designed specifically for use by a sole owner of a business that will assist in establishing their agreement between themselves and the entity. As well, the owner will have the ability to establish basic operations and policies intended for their business. This document will provide beneficial tax options once the document is filed with the state.
Texas does not require any company to create or possess this document to have the legal ability to conduct business, although, without the protections offered by the implementation of this document, the owner’s personal assets could become vulnerable to liquidation if the owner is presented with any form of litigation in which the courts find in favor of the claimant. Completion and filing of the document will protect the private assets of the owner. The company, however, will remain liable in the eyes of the court. The placement of the document will also provide tax benefits for the owner and the business.