Create An LLC
Maintain An LLC

A corporation’s share structure can ensure that a bad business partner both puts you at greater risk and gets something for nothing. Stay with an LLC to ensure fair distributions of equity and total protection.

In Part 2 of the Limited Liability Company operating agreement, I discuss the way the LLC is different from the partnership or corporation because it is not bound by a lot of case law that imposes fiduciary duties. We assess John Cunningham’s strategy for understanding the LLC Act, and how it helps us to write an effective operating agreement.

Forming an LLC by submitting Articles of Organization to the state filing agency is just the beginning. Having an operating agreement that serves as a guide to properly run your LLC is the critical factor.

It is becoming prudent in many states to add an additional member to your LLC. It is important however not to appear as though you are adding a straw-man member. All LLC members must have a legitimate interest in the LLC, but what is a “legitimate interest” may be a matter of perspective.

Forming an LLC in California creates problems for those who need their business up and running but do not live near Sacramento. The STARTright submission service really helps to move this process along. California LLCs get formed much faster.

For those who do not know, STARTrightllc.com is a new web site where business owners may go to create and maintain an LLC. The Utah LLC was the first to be available this summer in July. The California LLC and the Arizona LLC followed quickly in late July early [...]