Somebody asked me the following question: "If you start a new LLC, but have old business credit cards from a previous (but now closed) LLC, can you use those credit cards with the new business without causing problems?" It is a little bit like asking, "If my grandfather died and left behind some credit cards … Read More
A professional cannot form a regular corporation or limited liability company to sell his or her professional services. This is well known about lawyers and doctors, but it is also true for nurses, psychologists, and any other profession designated in Title 8 of the education law. These professions have to form a special kind of … Read More
Yes, but they would typically be called membership certificates or units. In my experience, small businesses rarely issue such membership certificates. Typically, when two or more people form an LLC, they form the entity by filing the necessary paperwork with the Department of State and then enter into an operating agreement between themselves and the … Read More
There are times in the life of a business when one business form has to be converted into another. For example, a startup may have initially decided to form an LLC in order to pass through the LLC’s losses to the owners’ tax returns, thereby allowing them to deduct such losses from their other non … Read More
A reader asked this question in response to my post: Taking Care of the LLC Publication Requirement: “I was hoping you could illuminate something for your readers. If a business were to file a pub requirement under one name (i.e. Acme, LLC.) but then decided that they wanted a different name and started a DBA … Read More
What can a member of an LLC do if managers or members of the LLC engage in conduct that harms the LLC? A New York Appellate Court has held (Tzolis v Wolff, 2007 NY Slip Opinion, Appellate Division, First Department) that a member of an LLC has standing to bring a so called "derivative action." … Read More
Divorcing from your business partners in a limited liability company can be just as nerve-racking, costly and life/business interrupting as divorcing your spouse. What is worse, if you failed to plan for an exit strategy in an operating agreement, you could be unsuccessful and be stuck with the LLC for good. Peter Mahler, a partner … Read More
