Each state has laws governing the operation of corporations, limited liability companies and partnerships. Included in those statutes are rules outlining the duty of care each owner of the business owes to the other owners. These state statutes also identify areas where the governing instruments of the entity (the partnership […]
As a shareholder of a corporation or a member of an LLC, what rights do you have to information? This question often arises in the context of a dispute among the owners. If you are the controlling shareholder or member, this is not typically an issue, but for holders of […]
Generally, absent an agreement to the contrary, there is no requirement that a business make distributions to its owners. This and most all other decisions are controlled by the majority. A shareholder agreement should address how distributable cash flow, which is not limited to profits, should be determined and how […]
Businesses finance operations from one or a combination of capital contributions from the partners, debt, cash flow from operations, and sales of interests in the business. But what happens when the money runs dry? Can a partner be forced to contribute more funds to the business or to personally guaranty […]
The vast majority of businesses, large and small, are private enterprises. Excluding sole proprietorships, they typically are formed as partnerships, limited liability companies, or corporations. No matter the legal form of the entity, memorializing the business deal with your partners is crucial. This general understanding and the details of the […]