LLCs are unique in that “ownership” has two different meanings. First, it means the right to make decisions about how the business is operated. That’s called “Membership” and “Management”. Second is a right to receive profits from the LLC, that’s called an “Economic Interest” (the term varies by state). You can have one right without the other, or if you… Read More
In any business there are competing interests among owners and those who control the business. LLCs are no exception. In this video I briefly discuss who has the right to make decisions within a multi-owner LLC
LLC Operating Agreements: What Critical Elements Should Be In Them? This video discusses how Operating Agreements are structured and what elements at a minimum should be in them.
Contract Basics: What Should Be In Every Vendor Contract? Some critical elements such as price, quantity, quality, delivery terms, warranty terms. How to get paid, of course, and where the contract is to be performed. Contact me if you have any questions on this or any business law issue.
Corporations: What Are Bylaws and Why Does Your Business Need Them? Bylaws are the structure of how your business operates. Who gets to make what decisions, who doesn’t get to make decisions, how to resolve disputes among owners, how to bring in new owners and get rid of old.
How to take profits from a corporation. There’s really only three ways, each of which carries with it a multitude of procedural, legal, and tax rules. Salary or wage for a shareholder; dividends; and selling shares for increased value. It’s important to consult with your lawyer and accountant before trying any of these three procedures.