Create a free account in our business center to access business agreement templates and dozens of other guides and resources that are useful for your business. The Massachusetts LLC Enterprise Agreement is a legal document that would be made available to individual contractors or members of a large company for the implementation of procedures and business guidelines established by unanimous agreement with respect to multi-member companies. The document is by no means a prerequisite in the state of Massachusetts. However, if the owner or managing members decide not to apply the document, any litigation brought against a business for any reason could be devastating with respect to the personal wealth of a single owner or member. Without this document, there is no separation between the owner/member and the commercial debts and obligations. The company could also benefit from tax benefits with the document. A manager-managed LLC is a limited liability company in which one or more executives direct the day-to-day operations of the company, while members assume a more passive role. An officer may be an LLC member or someone hired from outside the company. For LCs managed by managers, an enterprise agreement is essential to clearly define both the authorities and the obligations of managers as well as the rights of members. (d) Unless otherwise stated by the enterprise agreement, a member or officer of a limited liability company may delegate some or all of that member`s rights or powers to execute and manage and control the affairs and affairs of the limited liability company, including delegation to representatives and collaborators of a member or officer of the limited liability company and delegation by a management agreement or other agreement or other means to others. Unless otherwise stated in the enterprise agreement, such a transfer by a member or director of a limited liability company must not have the effect that the member or manager is no longer a member or manager of the limited liability company.
Whether you set up a single or multi-person LLC, your enterprise agreement should address all of the following topics. Some of these provisions will not have much influence on the actual operations of a single-headed LLC, but they remain important for reasons of legal formalities. THE LLC Enterprise Agreement provides managing members with the opportunity to organize their internal affairs and define any arrangements they may wish to put in place.