A Massachusetts limited liability company operating agreement should be reviewed and then executed as a written contract when organizers first form their Massachusetts entity. Although not a requirement of the Commonwealth of Massachusetts, a signed operating agreement can be invaluable when proving a company’s membership structure (i.e., voting power, etc.), a member’s authority, and its tax status.
As a contract, it will show that every signature member has agreed to its content, so it is widely suggested the Massachusetts members remain well-educated on the current laws, the LLC’s industry, and how this agreement will obligate them.
Is it Required in Massachusetts?
No. No legal requirements are made for limited liability companies in the Commonwealth of Massachusetts to have an operating agreement. A limited liability company may form and operate in the Commonwealth, but this is considered unwise.
Single-Member LLC operating agreement – The contract used by limited liability companies with only one (1) member.
Multi-Member LLC operating agreement – The contract limited liability companies made up of two members or more use.
”’Operating agreement’, any written or oral agreement of the members as to the affairs of a limited liability company and the conduct of its business.”