Massachusetts Operating Agreement for States who have Adopted the Uniform Limited Liability Act and the Revised Uniform Limited Liability Act

State:
Multi-State
Control #:
US-01931BG
Format:
Word
Instant download

Description

A Limited Liability Company (LLC) is a separate legal entity that can conduct business just like a corporation with many of the advantages of a partnership. It is taxed as a partnership. Its owners are called members and receive income from the LLC just as a partner would. There is no tax on the LLC entity itself. The members are not personally liable for the debts and obligations of the entity like partners would be. Basically, an LLC combines the tax advantages of a partnership with the limited liability feature of a corporation.


An LLC is formed by filing articles of organization with the secretary of state in the same type manner that articles of incorporation are filed. The articles must contain the name, purpose, duration, registered agent, and principle office of the LLC. The name of the LLC must contain the words Limited Liability Company or LLC. An LLC is a separate legal entity like a corporation.


Management of an LLC is vested in its members. An operating agreement is executed by the members and operates much the same way a partnership agreement operates. Profits and losses are shared according to the terms of the operating agreement.

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  • Preview Operating Agreement for States who have Adopted the Uniform Limited Liability Act and the Revised Uniform Limited Liability Act
  • Preview Operating Agreement for States who have Adopted the Uniform Limited Liability Act and the Revised Uniform Limited Liability Act
  • Preview Operating Agreement for States who have Adopted the Uniform Limited Liability Act and the Revised Uniform Limited Liability Act
  • Preview Operating Agreement for States who have Adopted the Uniform Limited Liability Act and the Revised Uniform Limited Liability Act
  • Preview Operating Agreement for States who have Adopted the Uniform Limited Liability Act and the Revised Uniform Limited Liability Act
  • Preview Operating Agreement for States who have Adopted the Uniform Limited Liability Act and the Revised Uniform Limited Liability Act
  • Preview Operating Agreement for States who have Adopted the Uniform Limited Liability Act and the Revised Uniform Limited Liability Act
  • Preview Operating Agreement for States who have Adopted the Uniform Limited Liability Act and the Revised Uniform Limited Liability Act

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FAQ

Choosing to run your company as an LLC or LLP depends upon your profession and your state. If you're a professional who needs a license to do business, you're better off running your company as an LLP if your state allows it. If you are not a professional, an LLC is usually the best fit for your business.

An LLP or an LLC with two or more members will be treated as a partnership if it's treated as a partnership for federal tax purposes. An LLP or LLC will be treated as a corporation for Massachusetts income tax purposes if it is classified as such for federal tax purposes.

About 40 states allow the formation of an LLP, and the laws vary by state. Some states limit what professions can form an LLP, so check your state statutes. If your business plans to operate in multiple states, check the state's statutes to ensure the state recognizes a foreign LLP (an LLP formed in another state).

Some disadvantages of an LLP include higher formation and maintenance costs, unlimited liability for some partners, limited access to capital, and not being suitable for all businesses.

A limited liability company, or LLC, is a type of business entity allowed under Massachusetts law. Its owners ? called ?members? ? can limit their personal liability for the debts and obligations of the business.

Massachusetts does not require you to submit an Operating Agreement to form your LLC.

Massachusetts's Articles of Domestication only apply to corporations. Domestication is the state-assisted process of moving a business from one state to another, which streamlines the whole ordeal and is often less expensive?unfortunately, Massachusetts doesn't assist with domestication for out-of-state LLCs.

In order to create a limited liability partnership in Massachusetts, you must file registration with the Secretary of State. Unlike many other states, Massachusetts does not provide registration forms for limited liability entities.

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Massachusetts Operating Agreement for States who have Adopted the Uniform Limited Liability Act and the Revised Uniform Limited Liability Act