Can I withdraw from a New York LLC? LLC terminology uses the word “withdraw”, what it means is that someone gives up on his LLC membership status and after withdrawing is no longer a member. Clients are often confused when they see this provision in their operating agreement: A Member may not withdraw from the … Read More
Picture this: Your Ohio/California/Michigan business provides services to customers nationwide. One day you have an interest from a New York caller. There is email back and force, phone calls, and finally you send your service contract to the New Yorker who signs it and emails it back to you. All the services you provide take … Read More
Many clients come to me with complaints about their business partner and his or her misconduct in managing the co-owned LLC. Mismanagement that resulted in unnecessary debt for the LLC, liabilities, waste of the LLC’s assets and so forth. They invariably ask if they can sue the co-member for such misconduct and get damages. After … Read More
How do you evaluate small business litigation; whether to bring a lawsuit or not? Metaphysical Overview The small business owner considering litigation, or being sued, should at the outset take what I refer to as a “metaphysical” overview of the problem. The two constants of litigation are that it is time-consuming, expensive and the outcome … Read More
Promissory notes are a common instrument in the financial world, but do you know what they are? Here are the basics: What is a Promissory Note? A Promissory Note (also known as “note” or “negotiable instrument”) is a written statement that evidences that money is owed to you by the author (also known as “maker”) … Read More
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
