At the end of most contracts there is a section of miscellaneous provisions. It is easy to overlook these provisions as superfluous legalese, but they have significant meaning for the business, most importantly how disputes are resolved. Arbitration, Attorney Fees, and Governing Law By contract, the parties may decide that…
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LLCs with multiple owners need to document their procedures for handling the expulsion and departure of members, as well as dissolution of the company. Without an operating agreement to define these processes, owners will be poorly able to execute these activities. Withdrawal or Death of a Member You may have…
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One of the key pieces of a limited liability company, and why business owners choose to organize under such an entity, is the protection it provides to a business owner’s personal assets. Including two additional provisions, an indemnity clause and a limitation of liability, can further enhance the limited liability…
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As discussed in a previous post, operating agreements are a fundamental founding document for an LLC. The beauty of an operating agreement is that it can be extraordinarily flexible to accommodate almost limitless options to suit the specific needs of any business and its owners. The agreement can also be…
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An operating agreement is the document that memorializes the manner in which the members of a limited liability company (LLC) will govern themselves and manage the company’s affairs. The agreement defines the LLC’s business and the financial and managerial roles of its members. The operating agreement can contain anything its…
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