The Massachusetts single-member LLC operating agreement is used by limited liability companies with one (1) member to lay out the company rules and to solidify the LLC status. The agreement is an internal document and need not be filed with the Secretary of State. The document enables the owner to relay the policies and purpose of the company, as well as provide proof of ownership when seeking investment or loans.
One of the most essential functions of the operating agreement is to separate the business entity assets from the assets of its owner, thereby protecting the owner should the company face any lawsuits or debts. Even though state law does not require the owner to draft an agreement, without it, they may appear to be operating as a sole proprietor and lose liability protection.