A New Jersey single-member LLC operating agreement is used by the sole proprietor of a limited liability company to formally establish internal policies, procedures, and ownership of the business. Implemented shortly after the formation of the company, an operating agreement also solidifies the LLC’s standing as a legally separate entity from the owner. This helps limit the owner’s exposure to any liabilities faced by the company, such as bankruptcy or litigation. In addition, the document offers the company credibility in the eyes of financial institutions and potential investors. Without an operating agreement in place, a company is subject to the state’s operational laws governing LLCs.