Transcript
Remember, that even an informative video like this one can’t substitute for advice from your own attorney, so if you need help, make sure to contact one.
When picking an entity for your company, a lot of people opt for the LLC because it’s often called a more flexible and simpler structure than other options. This is true in a lot of ways, but it’s a best practice to keep good records, just like you would with a C-Corp. If you don’t, you can open yourself up to liability in lawsuits, and one of the main reasons to even form a business entity is to protect yourself from liability.
In this video you’re going to learn about nine circumstances where you might have to make and keep records of a company action.
The first thing to note, is that your company agreement, also called an operating agreement, will specify when the members or managers have to vote on an issue. That being said, here are nine common ones.
One, When you’re amending your operating agreement.
Two, When someone wants to sell or transfer their ownership
Three, When you want to appoint a manager, or CEO or other executive
Four, when expelling a member
Five, when calling an unscheduled meeting
Six, when distributing earnings
Seven, when taking on a large amount of debt
Eight, when closing down or selling the company
Nine, when skipping a meeting
That’s it – nine situations where your LLC might have to take a vote. Don’t substitute this video for your own attorney’s advice, but hopefully it should give you a heads up about when you need one.
If you liked this video and found it helpful, make sure to check back for more – bookmark it, subscribe, do what you gotta do to keep yourself informed.
I’m Alex Shahrestani with Promise Legal I’m based in Austin, Texas, and I’ll see you next time.
