When you own or co-own a limited liability company (LLC), you enjoy a lot of flexibility running the business if you have the right operating agreement in place.
Unfortunately, what was good for your company when you set up the LLC often isn’t ideal (and even harmful) as circumstances change.
Because new circumstances will change your priorities. These can include:
* adding or removing members (owners)
* getting married or divorced
* having kids
* succession planning (who will run the business when you retire?)
* changing the company’s business model
* electing to be treated like a different entity in order to reduce taxes paid
And if there are multiple members, you’ll want to make sure there’s a “Texas shootout” or other buyout provision in the LLC’s operating agreement that makes it easy for owners to leave without destroying the company in lawsuits.
An experienced business lawyer can fix your operating agreement so it makes sense based on existing circumstances while planning for the future.