There are no materials you need for our next class. During our next class, we will review some basic points of drafting and conduct an in-class exercise related to drafting contracts.
As such, there is nothing you need to do to prepare for class. Instead, please take some time to review prior course work (or catch up on your readings, if needed).
See you in class.
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2 comments:
In a single-member LLC, how does the sole member create an "operating agreement" (i.e., a contract) when there is no second party? How does this conundrum accord with the statutory default rules?
This is an area that can raise some difficulty. For income tax purposes, for instance, the IRS disregards the entity and treats the single member LLC (SMLLC) as a sole proprietorship.
Some states don’t allow the formation of single-member LLCs, but many do. There are certainly some concerns about creating an SMLLC, but this can be rectified by careful planning most of the time. An owner can give a small percentage to a spouse or family member, for instance.
Creating the operating agreement is not really the problem. After all, the document needs to be adopted by vote of the members -- if one person owns 100% it's a pretty easy vote.
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