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A Good LLC Operating Agreement Can Avoid a Really Bad Court Case

Many of the designers that I counsel have formed limited liability companies (LLCs).  While this is a great first step in your life as an entrepreneur, have you addressed what will happen if … a member of the LLC wants out, files bankruptcy, or fails to make a required capital contribution?  What if your co-member is also an employee and you need to terminate their employment?  These and other “triggering events” need to be addressed in an operating agreement.  As the title to the linked article aptly explains, A Good LLC Operating Agreement Can Avoid a Really Bad Court Case.  If you formed a multi-member LLC, or you don’t plan to be a sole member LLC forever, please read the linked article written by my partner Andy Vredenburg. The benefits of having a good operating agreement are well worth the modest attorney fees that you will incur. Deanna

Categories: Entity Planning, Fashion


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