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  • LLC Operating Agreements

    Small Business
    Author: Claudia Raessler, Esq.
    1. Today’s Objectives – “in the weeds” about OAs
    In November we continued the story of Jackie and Camille, partners in a small manufacturing company facing a cash flow crisis. One of the key points discussed in the case study – LLC Operating Agreements, the “rule of the road” signed at formation.
    I typically discuss with clients that an Operating Agreement (“OA”) is a contract by law and represent the rules of the road used to establish the Company culture and lay the foundation for running the business. Sounds simple – right? Pull a form from on-line, have a quick discussion (after all we are “partners” and we should be able to agree!) and then get to work building a business and making money. Although we have yet to see how Jackie and Camille are going to solve their cash flow problem, in the meantime here is hoping their OA met some of the basic objectives when the yellow brick road gets “bumpy”.
    1. What Are the OA fundamental subject areas at formation?

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  • Jackie and Camile – Traveling the Yellow Brick Road

    Author: Claudia Raessler, Esq.

    In September, we began the story of a small manufacturing company (“SME”) facing a crisis in cash flow. To continue the story, let’s get to know Jackie and Camile, whose dream started them down their yellow brick road.

    Six years ago, these two college friends had professional careers in other sectors, yet they decided to take a risk and start a small textile business. Although friends since college, over the last 15 years, they have led very separate lives, and although they now share a common vision, over the years they have developed very different leadership and decision-making styles. This will become important as our story unfolds.

    First, the big picture and small U.S. business

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  • Stories of Small Business Speed Bumps – The Start Up

    Author: Claudia Raessler, Esq.

    Recently, I read an article highlighting the 7 reasons lawyers are “hated”.[1] The reasons ranged from those unexplained high fees to the “long-winded narrative ensuring every risk is covered” so the client cannot say – “you didn’t tell me”. A discussion involving (1) choice of legal entity; (2) why do I need to form an “entity”; and (3) how do I navigate the governance and operational issues is likely one of the very first experiences a client faces in dealing with their lawyer and will “trigger” the hate emotion – especially in a small business setting.

    For the next few weeks we are going to tell the story of the speed bumps encountered by a small business starting with a “closure” in a series called “Stories of Small Business Speed Bumps”. .We hope the series provides value and yet avoids the need for a reader to check off one of the 7 boxes supporting Shakespeare’s conclusion – “let’s kill all the lawyers”.

    The caveat, the objective of thisBlog isnotto provide a small treatise discussion as to every nuance of a specific area of law. Rather the goal is to highlight a story or event that requires the coordination of legal and operational thinking to survive the “speed bump”. The stories are “fictional’ and should not be assumed to provide legal advice involving a specific matter.

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