A Massachusetts multi-member LLC operating agreement is used to detail a limited liability company’s internal rules, regulations, and membership structure. Drafting an operating agreement is optional; however, doing so provides several benefits to founding members. For instance, the agreement separates the business assets from those of the owners, which means that the owners’ assets are safeguarded if the company is sued or faces bankruptcy.
This agreement is meant to be an internal document, so it does not need to be filed with the Secretary of State. It should, however, be kept on hand so that owners may reference it if needed.