A Massachusetts single-member LLC operating agreement is a vital legal document for entrepreneurs who want to establish proper procedures and policies for their business. This document helps separate the owner’s personal assets from the liabilities and debts of the company, ensuring liability protection in case of bankruptcy, litigation, or failure.
Although it is not mandatory by the state, completing and filing the document to avail tax benefits and solidifying the LLC’s status is highly recommended. The agreement serves as an internal document and provides evidence of ownership when seeking investments or loans, thus protecting the owner’s assets in case of any lawsuits or debts.
