The state does not require a company to complete this document, but if the document does not have the document, the personal assets could be vulnerable to bankruptcy or litigation in the event of a lack of activity. It is recommended that the document be notarized, as the member is the only person to sign. This section explains how to manage financial statements, including capital and distribution accounts. At the end of each calendar year, close the books and prepare a membership statement (yes, it`s only for you, but this type of registration is important). A Delaware single-member LLC is a document intended to describe in detail who the members of the LLC are and what percentage of LLC they own (also known as membership interest). The corporate agreement also describes how the LLC is managed, how profit and loss is allocated, and how taxes are paid. This is an essential document for every LLC, because during the course of running your business, you might need a company agreement to comply with the following: Imagine a more pessimistic scenario in which your LLCs will be sued by creditors – to whom membership interest will then be awarded. This section states that such an interest does not include rights to participate in the administration or operation of the LLC. Creditors would only receive distributions (and only until the debt is repaid). The Delaware Single Member LLC Business Agreement is a legal document used by a single individual owner/contractor to define the operating procedures that the owner`s business will follow. The form offers an individual entrepreneur the same tax and protection benefits as large companies. This document should be carefully reviewed.