A recent case (Wythe Berry LLC v. Goldman) found that if the LLC entity does not sign the operating agreement, it may not be bound to its arbitration clause. The LLC entity may be treated separately from the actual members.

The fix to this rule is simple: ensure the signature page has a line for the "Company" to sign, not just the members. This prevents situations where a member sues the company, and the company can't use the arbitration clause because it "never signed" the agreement.

Our automated drafting tool automatically includes the entity signature block to protect you from this loophole. If you are a single-member LLC in NY, you can create your Single-Member Operating Agreement with Legal Opus in minutes.