WORCESTER 508-471-3018
Metro West 508-709-0024

Does your Massachusetts LLC need an operating agreement?

While Massachusetts Limited Liability Company Act does not demand that your LLC have a formal operating agreement, it is generally a good idea to have one in place. The operating agreement serves many purposes and is flexible, so it can easily be tailored to meet your businesses specific needs.

As the name suggests, one of the fundamental purposes of a LLC is to limit your personal liability for the debts of the business. And the broad flexibility of the LLC form allows you to create a single-member LLC. 

However, without an operating agreement, your single-member LLC may look very much like a sole proprietorship, and you want an operating agreement to provide evidence, should a dispute arise that you are entitled to the benefits of an LLC's liability limitation.

An operating agreement is helpful in that it can be used by a single-member LLC to ensure that the LLC completes all of the necessary filings and it can outline the LLC's financial structure. This also help you prevent the comingling of personal and business assets, which can lead to the loss of limited liability status.

For a multi-member LLC, the operating agreement can delineates a wide variety of other functions, including the rights and duties of the members, how much they own, the percentage of profits shared, management duties, organization of meetings and how to sell or wind-down the LLC.

Because of the potential complexity and the long-term implications of what powers and authority is contained within the operating agreement, it is advised that the founding members of the LLC consult with an attorney experienced in drawing up such documents.

Massachusetts General Laws, "Limited Liability Company Act," accessed October 29, 2014

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us Today To Learn More

The skilled attorneys at SederLaw stand ready to handle even your most difficult legal issues. Turn to us for skilled representation to help you accomplish your legal goals.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

An Impressive Track Record
Of Achievement In The Law


Worcester Office
339 Main Street
Suite 300
Burnside Building
Worcester, MA 01608

Phone: 508-709-0024
Phone: 508-471-3018
Fax: 508-831-0955
Map & Directions

Metro West Office
1900 West Park Drive
Suite 280
Westborough, MA 01581

Phone: 508-471-3018
Fax: 508-831-0955
Map & Directions