Jacklyn Fetbroyt will speak on the topic of LLC operating agreements as part of a full day continuing legal education (CLE) program for the National Business Institute on April 25, 2016 in Philadelphia, Pennsylvania. She will address the subjects of formation and drafting: articles and operating agreement; and members and managers: rights, responsibilities and voting provisions. Additional seminar subjects addressed include common operating agreement mistakes and key LLC litigation developments; tax mistakes made in distribution, allocation and entity selection; transfer restriction issues, right of first refusal, impasses (put/call), capital call and dissolution provisions; and ethics. Online registration for the program is available.
1. Define your goals. What is your ultimate goal in transitioning your business? Do you plan on funding your retirement through this transition? Is it to leave a legacy? The reason behind your desire to transition will determine how you proceed.
2. Plan & Implement Your Strategies. Create a clear plan as you move forward with the transition. Always be sure you have this plan set before you start so you do not run into confusion while transitioning. Consider the following to include in your strategy as you prepare:
a. Financial. If your goal is towards retirement, how will you be funding it? What will be your compensation as you leave the company? Be sure you highlight financial issues clearly and consult with the appropriate experts to make sure these issues are handled well.