What is an LLC Operating Agreement?
An operating agreement is the document that will control the governance of your LLC. This is different from the Articles of Organization that you file with the Secretary of State when you create your LLC.
The operating agreement does not have to be filed with the Secretary of State. It is also not required to create the LLC in the first place. If you have no operating agreement, the terms of the LLC statute will control.
If you have more than one member, or owner, of the LLC, you should have an operating agreement. This will govern things like how decisions are made, whether and how members can transfer their interests, and what happens if one or more partners dies or wants out of the business.
The Articles of Organization and creating the LLC entity are not complicated, and in many cases can be done with or without an attorney. An operating agreement, however, should be done in consultation with a business attorney to make sure that it reflects how you and your partner(s) want to do business.
Learn more here about incorporating your business in Massachusetts.
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