LLC Issues to Consider

It’s important that you have a clear understanding of your rights and duties as a member of an LLC. Identifying and resolving those issues before an LLC formation will help eliminate potentially incompatible business partners and help avoid potential disputes in the future. Some things you may want to consider are:

• Time and effort commitments
• Financial and service contributions
• Fiduciary Duties owed between members
• Personal liabilities members may be subject to if they breach their duties
• Economic interests and rights to LLC profits
• Voting rights
• Assignability of membership rights to third parties
• Determine dispute resolution procedures
• Tax consequences of your chosen IRS classification