Approval

• An organization needs to receive approval as a limited liability company (LLC) from the Massachusetts Secretary of State's office. Its application, which is called a certificate of organization, features the organization's official name, which must include a reference to its status as an LLC.
  
  

State Status

• Under the act, an LLC must have an office in the state and a resident agent. The resident agent can be an individual who lives in Massachusetts or a corporation that is authorized to conduct business in the state.
  
  

Limited Liability Shield

• A central feature of the LLC under the Massachusetts act is that it has a limited liability shield that indemnifies members or managers of the company from liability. Indemnification depends on an individual having acted in good faith in the best interested of the LLC.
  
  

Income Tax

• A LLC in Massachusetts is classified as a partnership for tax purposes, according to a summary by lawyer Dan Karpman. This means that the company's income is taxed only when it is distributed to its members and not when it is earned.
  
  

Flexible Law

• According to Karpman, the Massachusetts Limited Liability Company Act is a flexible act because it allows LLC companies to possess some corporate characteristics without being qualified as a corporation.