Entities
Operating agreement
An operating agreement is an internal document setting out who owns an LLC, how it is managed, how profits are divided and what happens when a member leaves. It is not filed with any state. Banks and payment processors frequently request it during account opening.
In plain terms: The rulebook for who owns and runs the company. Nobody files it; everyone asks for it.
Why it matters
Single-member founders skip this and then meet a bank that wants it. Beyond the practical need, it is the document that evidences the company is genuinely separate from you — which is the argument you rely on if liability protection is ever challenged.
Common misunderstanding
Believing a single-member LLC does not need one. No state requires it, but the bank probably will.
Read the full guideUS company formation