A Michigan single-member LLC operating agreement is an important document that is typically drafted after the formation of a single-member limited liability company. While not required by state law in Michigan, an operating agreement formally establishes the LLC’s sole ownership and outlines information about company management, internal procedures, and the rights and responsibilities of the owner. The document also helps limit the personal liability of the owner in the event of any legal action or financial obligations faced by the business. In addition, having an operating agreement helps build credibility with potential investors or financial institutions.