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Category Archives: LLC

Sole Prop vs. LLC vs. Corp.

October 2, 2017

I am going to discuss one of the most common questions I get when I speak to audiences with newer businesses. Should I be an LLC, should I be a corporation, and is it okay to be a sole proprietorship? It really depends on your situation, so we really want to look at your circumstances. I get clients in all of these different baskets, and we really have to look at it, carefully.

Now, typically, if you have more than one person in your business, you want to get rid of the sole proprietorship.… Read the rest

How to Protect Yourself When Things Fall Apart (Part IIII)

September 13, 2017

In Mizrahi v. Cohen, [1] a dentist and an optometrist formed a limited liability company for the purpose of the construction and operation of a mixed-use building in which they intended to set up their individual offices.  They did not have an LLC agreement at the time the LLC was formed but it was implemented a few months later when they purchased the land because the lender required an LLC agreement. The attorney who represented both members at the closing drafted an LLC agreement. … Read the rest

What If Your LLC Doesn’t Fit

September 6, 2017

Today I want to talk about your LLC and specifically your LLC agreement. What if your LLC agreement doesn’t fit your circumstances? A lot of times companies find that when they go back and revisit their LLC agreement, it doesn’t fit their circumstances. Maybe it was a form agreement that was downloaded off the internet early in the history of the company. Maybe that company has evolved and changed – the ownership’s changed. The valuation mechanisms in the LLC have changed.… Read the rest

Practical Tips for Setting Up a Board of Directors

August 9, 2017

If you’ve been following our blog, you know we work with business owners to help them build companies that will stand the test of time. Companies that will do more than just what the owner does and that will survive even if the owner is not there. We help them build robust management systems, and often, that means a Board of Directors.

But the question often arises, how do we set up a Board of Directors? How do we make one work?… Read the rest

What is the Difference Between Officers and a Board of Directors?

August 8, 2017

This is a common question I hear when I speak or work with business owners about the differences between board members and officers. How are things allocated?

In a traditional model of corporate governance (which is now imparted in some LLCs depending on the LLC Agreement you use) there is typically a Board of Directors and officers. In a theoretical model, the shareholders of the corporation (or the members of the LLC) will select the directors, and the directors will, in turn, select the officers, so we have a hierarchical structure.… Read the rest

Managing an LLC

August 7, 2017

R. Shawn McBride recently spoke about the choices in managing an LLC.

We’ve been collecting feedback from the community, hearing what types of issues people are dealing with. We have been talking about LLCs versus corporations. One of the recent questions we’ve gotten is “How do I manage my LLC?” If you have questions, send them to me or comment below

Which management structure is best for your LLC? What works for you? It is a personal decision. Figure out what works for your business, and how you want to run your business.… Read the rest

LLC Means Limited Liability, Right

July 17, 2017

R. Shawn McBride recently spoke about protection and lack of protection concerning LLC.

Hey folks, Shawn here with you. LLCs mean limited liability, right? You formed your company, you don’t have to worry anymore do you? Well, maybe not. Maybe so. Just because you formed an LLC or a corporation with your state and did that basic paperwork doesn’t necessarily mean that you’re going to have liability protection. There’s more to it than that.

You need to run your business like a business.… Read the rest

LLC Versus S Corporation Versus Corporation, What Are The Pros And Cons?

July 14, 2017

It’s a common question I get. Do I want to be an LLC? Do I want to set up as an S corporation, or do I want to set up as a corporation? The answer truly depends on the company and your needs and your wants and your future plans. There is no one answer. One is not better than the other. What we have seen is an emergence of the LLC as being a clear choice to be reckoned with.… Read the rest

All postings are intended to be planning tools to familiarize readers with some of the high-level issues discussed therein. No posting is intended to be a comprehensive discussion and additional details should be discussed with your transaction planners including attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity.