As a solo founder in the District of Columbia, forming an LLC provides crucial liability protection and credibility. While not legally mandated in DC for single-member LLCs, a well-drafted operating agreement is essential. This guide outlines key considerations for your 2026 operating agreement, ensuring your business is structured for success.
Even as a single-member LLC, an operating agreement serves several vital purposes. It formally establishes your business as a separate legal entity, protecting your personal assets from business debts and lawsuits. It also clarifies the ownership structure (100% ownership by you), management responsibilities, and how profits and losses are allocated. Furthermore, it can help prevent future disputes, especially if you later add members or convert to a multi-member LLC. Without it, your LLC's operations will default to District of Columbia's LLC statutes, which may not align with your specific needs.
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