This may come as a surprise to many LLC members and managers: Keeping records for your LLC is required under the New York LLC laws. You have an obligation to keep proper records under §1102 of the New York Limited Liability Company Laws. What Records MUST be kept in an LLC? Specifically, under Section 1102 … Read More
A plaintiff sued various limited liability companies and the majority member of those limited liability companies and thought it was a good idea to put “notices of pendency” on the buildings owned by the limited liability companies. This, despite the fact that the plaintiff really only complained of not getting distributions from the limited liability … Read More
Can LLC Members ever be personally liable arising out of their position as a member of an LLC? As the name “Limited Liability Company” suggests, one would think that a member can never be liable for the debts and obligations of the LLC or otherwise while acting for the LLC. And the law says so … Read More
Regrettably, many many owners of an LLC do not have an operating agreement. If you are an owner of such an LLC, can you fault your fellow members for failure to enter into an operating agreement? Is there some sort of penalty for not having one? No, despite the law saying that each LLC has … Read More
50/50 members of an LLC without an operating agreement seem to have equal management power, equal equity, and equal voting rights and neither one can make a decision regarding the LLC without the consent of the other. This is what many people assume and quite often they are wrong. 50/50 members of an LLC do … Read More
If you are a member of an LLC and are being denied access to company records, we can help you get access by bringing a books and records petition in court under Section 1102 of the New York Limited Liability Company Law. The scenario is often like this: You’ve been happily doing business with your … Read More
LLCs without an Operating Agreement LLC members without an operating agreement may ask themselves, what rules apply to our LLC when we don’t have an operating agreement? Answer: The default rules of the New York LLC Law apply. The default rules are not always your friend, especially if you are a minority member. Unfortunately, many … Read More
