Single Member LLC Law and Legal Definition
Single Member LLC is a limited liability company having only a one member. The member of an LLC is the owner of the LLC. They are equivalent to partners in a partnership. A single member LLC is taxed as a sole proprietorship. Even though the LLC has only one member it is advantageous to have an operating agreement. The operating agreement describes the operations of the LLC, formation of the business and the procedures followed in the business. In the absence of an operating agreement, the LLC will be subject to the default rules of the state in which the LLC is organized.
