LLC vs Sole Proprietor: Which Agreements Do You Need?
Forming an LLC vs running as a sole proprietor changes which documents you need — and which you can skip.
Need a LLC operating agreement?
Start your LLC operating agreementSole proprietor — minimum viable paperwork
As a sole proprietor, you and the business are legally the same. You do not need an operating agreement, but you should still have a clean business contract template, an NDA template, and a contractor agreement for anyone you hire.
LLC — what changes
An LLC is a separate legal entity. That separation only holds up if you respect it. That means an operating agreement (even for single-member LLCs), a separate bank account, and contracts signed in the name of the LLC — not your personal name.
What both structures need
Every business that signs work needs a clean master contract, an NDA for sensitive conversations, and a contractor agreement for outside help. The structure of the business does not change which documents you need — it changes how you sign them.
Templates mentioned in this article
This article is a planning aid, not legal advice. For complex situations, consult a licensed attorney in your jurisdiction.