Single member LLC operating agreement

This is a single member LLC operating agreement worksheet that keeps the company's money and the owner's apart in figures. The capital you contributed is the opening capital account; the year's profit adds to it; the monthly draw times the months of draws comes out of it; the share of profit set aside for tax stays in the company; and the capital account at year end is capital plus profit less draws. Every figure is yours; the worksheet publishes no clause text and no tax rate. Free, on the page, no account; the paid plan saves every year's worksheet against the company.

Draws, counted for the year

A single-member agreement usually lets the owner take a regular draw against profit, and the draw times the months is what came out: $4,000 a month for twelve months is $48,000. Written into the agreement as a schedule and kept as a figure, it is the difference between an owner's draw and a muddle in the accounts.

The tax set-aside, as a share you set

A single-member company's profit is usually taxed to the owner, and most owners set a share of profit aside for it before drawing. The worksheet takes the share as your own figure and shows the amount: 25% of $70,000 is $17,500. The rate is yours and your accountant's; the worksheet publishes none.

What stays in, and the capital account at year end

Profit less draws less the tax set-aside is what stays in the company for next year, $4,500 on the worked example; capital plus profit less draws is the capital account at year end, $47,000. The paid plan keeps every year's figures against the company so the account is a column, not a reconstruction.