The terminology for limited liability companies can be confusing. For instance: who are the members, managers and managing members?
All of the owners of an LLC are its members, similar to stockholders in a corporation.
There are two different possible management structures for LLCs: A manager managed LLC or a member managed LLC.
One of the most common ways that a small business can be disrupted is when an owner wants to sell or transfer his or her interests the company. As a result, small businesses usually restrict the transfer of ownership in their companies.
Business relationships end for many reasons, sometimes unexpectedly. It is highly probable that there will come a time when of your partners will want to sell his or her shares or interest in the company either to a third party, to the company, or the remaining owners. It is important for business owners to address these issues early on, when the owners can reach an agreement on how to structure these transactions.
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Purchasing a business is a complex process and every transaction is different. The Buyer should thoroughly review the business, anticipate potential post-closing problems and include provisions in the closing documents which will resolve these problems if they arise.
While a divorce is a difficult and painful process under normal circumstances, it can be especially stressful and complicated for business owners. These issues are even more complex if both spouses own the business.
As a practical matter, the business needs to continue operations while the divorce process unfolds.
Small businesses often place restrictions on the transferability of ownership interests in these companies. It is best to have considered the issues relating to both the transferability of ownership and the termination of the relationship among the owners early on, when the owners can agree on how to handle these matters.
Successful companies evolve over time. It may be necessary to restructure the ownership, legal organization, or operational processes of a company in order to make your business more profitable.
You may need to perform one or a combination of the following actions: