Short Answer: Yes. Even a single-member LLC should generally have an operating agreement.
Why It Matters: An operating agreement establishes how the LLC will operate and helps demonstrate that it is a separate legal entity. For businesses with multiple owners, it also addresses governance, ownership, decision-making, buyouts, and dispute resolution.
Common Mistakes: Using a generic template; never updating the agreement; assuming one is unnecessary for a single-member LLC.
Michelle's Bottom Line: A well-drafted operating agreement provides clarity, establishes expectations, and can help prevent future disputes.
