SINCE 1974
If you have a Delaware LLC or corporation and have neglected to pay your agent or state fee, you may have been told by your registered agent that the company is in danger of “going void.” What does void mean? In the context of Delaware LLCs and corporations, it means that the registered agent “resigned” […]
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What Is a Delaware Dynasty Trust? A Delaware Dynasty Trust is a long-term multi-generational trust. It is created to pass family wealth from generation to generation while minimizing gift and transfer taxes. Typically a bank or other trustee controls trust distributions and management of its assets. Trust assets that remain in the trust are not part […]
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Delaware Has a Favorable Legal Climate for LLCs Outside of state legislature, the fair legal climate is nurtured in Delaware courts that attract businesses with predictability and well-reasoned decisions. There is a good explanation why in eight separate studies conducted by the US Chamber of Commerce, Delaware has been ranked #1 in state legal systems. […]
Continue ReadingWhat Is LLC Membership Interest? In short, your LLC interest is your bundle of rights and privileges defined by the LLC operating agreement. LCC membership interest is not usually held in the form of a membership certificate like corporate stock. Instead, it is usually set forth in the operating agreement under the term “units”. Like […]
Continue ReadingWhat Is a Shotgun Buyout? This first example of a buyout clause in an LLC Agreement can go by a few different names—“Texas Shootout”, “Russian Roulette”, or “Shotgun”. We will refer to this as a “Shotgun” buyout clause. In a Shotgun buyout, Owner #1 offers to buy all of the interests of Owner #2 […]
Continue ReadingThe Operating Agreement Should Address an Exit Strategy In limited liability companies involving a small number of members, the Operating Agreement will need to restrict transfers. That restriction assures that the parties will continue to do business with the same people, and not strangers. Restrictions on transfers of interests by small passive investors are less […]
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