We have formed an LLC, myself (48%), husband (48%), friend (4%). My question is that the 4% partner has made some statements about making large purchases. Our operating agreement says we need to agree before such a purchase is made. If he makes such a purchase anyways, are we (48%)+(48%) liable?? How can this be avoided?
BizResearcher | Window Shopper |
4/18/2012 - 10:54 am
Did you have an attorney draft your operating agreement or did you do it
yourselves? If an attorney created it, then it should be legally enforceable
in your state. You will need to remind your partner that he cannot bind the
business to any financial obligation without the consent of all partners.
Perhaps he doesn't understand that the Agreement is a legal document that
controls the actions of all members of the LLC. If he chooses to make the
purchases in his name, not the business's, then he may be able to do so. You
may need to talk with your attorney for clarification.
BizResearcher | Window Shopper | 4/18/2012 - 10:54 am
yourselves? If an attorney created it, then it should be legally enforceable
in your state. You will need to remind your partner that he cannot bind the
business to any financial obligation without the consent of all partners.
Perhaps he doesn't understand that the Agreement is a legal document that
controls the actions of all members of the LLC. If he chooses to make the
purchases in his name, not the business's, then he may be able to do so. You
may need to talk with your attorney for clarification.
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