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Got LLCs?

July 27, 2009

Marc Ward passes on some good advice on using LLCs in Iowa. You should read the whole thing, but this is especially true:

Read the operating agreement. This gem is from Frank Carroll. He noted that he has run across a lot of lawyers including in-house counsel that will read a particular section of the act, such as the provision that calls for unanimous votes to amend the operating agreement, and assume that it is the new law in the Tall Corn State. Of course readers of this blog should know otherwise. The operating agreement will still control if it speaks to the issue. The statute is the default rule in the absence of words to the contrary in the operating agreement.

LLCs are great tools, but they can be dangerous to the careless.

Tags: Frank Carroll.LLC.marc ward.