4 ms·

Good advice. I didn’t realize the OA was so important. I haven’t found any information online about SMLLCs that would lead me to think that it’s important; wha

• davismwfl 7y ago
  Yep, I have had multiple attorney's & accountants over the years affirm how critical the OA is to taxes and operational details of the company, so I've never been without one. The OA is critical because without it you default to a set of rules that the state defines which may not be correct for your operation, and may not protect you from the business or the business from you. Also, from a tax perspective this could mean you default to the least ideal tax plan for your situation, so don't let that happen. A little to your point though, usually single member LLC's are pretty simple so it isn't as complex but you still need an OA as it deals with a lot of stuff outside of just distributions. As a single member LLC the OA is what separates your personal assets from the business, and defines a set of guidelines that if the business follows will keep you and the business protected. Good part is there are templates for the OA's available online that you can just fill in all the key details for now. And when you have a few dollars run it past an attorney (and tax person) to clean it up and make sure things are good for how you want to operate. Obviously if you can do that immediately that's best, but that isn't always possible so as long as you have the basics in place then you are good.