3 ms·
(RE: #1) That's fine and dandy for LLC documents, but if you're working with partners and don't have a clear Operating Agreement written out then you're asking
by spencerfry 18y ago
(RE: #1)
That's fine and dandy for LLC documents, but if you're working with partners and don't have a clear Operating Agreement written out then you're asking for trouble. I had serious issues with my first successful startup because our Operating Agreement was basically pieced together from little things my partner and I found on the Net with collaboration from a first year Yale law school student. Terrible, terrible, terrible idea.
To make a long story short: the company became wildly successful very quickly and re-doing the Operating Agreement wasn't really on the top of our minds -- it never is when you're doing well. Then three years later the two of us grew apart and wanted to take the company in different directions. Sadly, we had a poorly written agreement that made this a very difficult process with lawyers on both sides fighting to interpret it. If you do nothing else, I'd say get this done professionally sooner rather than later.
- tstegart 18y agoYeah, my advice was definitely for a one person company. Two people should get it done professionally. With one person the focus is on protecting yourself from others. With two or more, the focus is not only protecting the principals, but regulating the relationship between the principals and the process by which that relationship might end. One thing a good lawyer will make you do is think about what will happen if your company breaks up, and they can advise you on how to structure your document to avoid a giant litigation mess.
- netcan 18y agoThe better then nothing bit still applies.
- jon_dahl 18y agoAgreed. If you have partners, employees, licensing agreements, or any other contracts, then you should hire a lawyer for good organizational documents. And don't copy & paste out of a book or website. :) This is true even if you're good friends with your partners. Or maybe even especially if you're friends with your partners. :)