Massachusetts LLC Operating Agreement: Oral vs. Written Rules (2026)

| Updated October 6, 2026

Massachusetts gives LLC members unusual flexibility at the agreement stage: Chapter 156C recognizes an operating agreement whether it is written or oral. But leaving key terms unwritten can matter because the statute ties default voting to unreturned contributions and gives members a six-month resignation route even when an agreement tries to restrict resignation.

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Page 1 of the Massachusetts Manager-Managed Operating Agreement
Single-Member Operating Agreement

For an LLC with one owner.

Multi-Member Operating Agreement

For an LLC with two or more owners who manage the business together.

Manager-Managed Operating Agreement

For an LLC where one or more managers handle the business’s management.

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Do Massachusetts LLCs Need an Operating Agreement?

No, not as a condition of forming the LLC. Massachusetts forms an LLC through a Certificate of Organization filed with the Secretary of the Commonwealth. Chapter 156C does not list an operating agreement among the documents required to create the company, although official Massachusetts guidance recommends creating one. The base filing fee for the Certificate of Organization is $500.

The operating agreement is also not filed with the state. Because Massachusetts law expressly recognizes oral operating agreements, notarization is not a general validity requirement either. A written agreement is still the safer choice because Chapter 156C uses written operating agreements for certain transfer, liability, and recordkeeping rules.

Massachusetts provides a practical formation overview in its official guide to starting an LLC.

Required for formation
No
Filed with the state
No
Notarization
Not required

How Massachusetts Defines an LLC Operating Agreement

Mass. Gen. Laws ch. 156C, § 2(9) Massachusetts Limited Liability Company Act
Read the statute ↗
“Operating agreement” means any written or oral agreement of the members as to the affairs of a limited liability company and the conduct of its business.

That definition gives Massachusetts LLCs broad flexibility, but the statute also creates an important distinction between an agreement that can be oral and rules that specifically depend on a written agreement.

Written or oral

The statutory definition recognizes both. An operating agreement does not become invalid merely because the members did not put the entire arrangement into a formal signed document.

Oral does not mean record-free

Under § 9(a)(5), Massachusetts still requires an LLC to keep written information covering member contributions, future contribution obligations, distribution rights, and dissolution events when those items are not already contained in a written operating agreement.

Written terms matter for ownership transfers

Under § 41(a), an assignee does not automatically become a member. A written operating agreement can establish the procedure for admitting an assignee; otherwise, approval of all other members is generally required.

What Happens When a Massachusetts Operating Agreement Is Silent?

Massachusetts has several defaults worth addressing directly because they do not all follow the same decision-making model. Member votes can turn on contribution value, manager votes default to a headcount, and resignation carries its own statutory notice rule.

For the voting rule itself, see Massachusetts General Laws § 21. The separate exit rule appears in Massachusetts General Laws § 36.

Member voting

If the agreement does not establish member voting rights, the controlling decision comes from members holding more than 50% of the unreturned contributions, not simply a majority of people.

§ 21(d)
Profits and distributions

If the agreement is silent, profits, losses, and distributions follow the agreed value of each member’s contributions that have been received and not returned.

§§ 29-30
Manager decisions

If manager voting rights are not addressed, a majority in number of the managers controls. That is different from the contribution-based default used for member voting.

§ 26(d)
Six-month exit

Even if the agreement says a member has no right to resign, the member may resign with at least six months’ written notice. If doing so breaches the agreement, the LLC may pursue damages and offset them against amounts otherwise distributable.

§ 36
Transfer of an interest

An assignee can receive the transferred economic rights but does not automatically receive management rights. Becoming a member generally requires approval of all other members unless a written operating agreement provides another procedure.

§§ 39, 41
Required written records

If the LLC does not put certain terms in a written operating agreement, it must still maintain a writing covering contributions, additional contribution obligations, distribution rights, and dissolution events.

§ 9(a)(5)

Research and References

  • Aaron Kra Boost Suite

    Aaron Kra, JD, Founder and Editor-in-Chief of Boost Suite, is a recognized authority on LLC formation, registered agents, and small-business compliance.
    A graduate of the University of Texas School of Law (ABA-accredited), he founded Boost Suite to turn complex state rules into plain-English, step-by-step guidance. For 9+ years, he has helped entrepreneurs with entity selection, registered-agent requirements, and multi-state compliance, and he leads the site’s legal/tax review.

    Previously, Aaron practiced business law in Austin (LLC/PLLC formations, conversions/domestications, UCC-1 filings, multi-state registrations) and completed a year-long secondment with a national registered-agent provider, working with filing clerks in 25+ states. At Boost Suite, he checks each guide with official US sources and updates everything when necessary. Read more about Aaron Kra and Boost Suite.

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