Charging Order

LLC Charging Order: Two-Way Protection Unlike many other states, one key benefit of the Delaware LLC not available to corporations in any state is that the Delaware LLC also offers a second type of protection: the “reverse shield.” Choosing to form a Delaware LLC creates a two-way shield. Unlike the traditional shield, the reverse shield […]

Which decisions are made by or require ratification by the members by simple majority (> 50%), supermajority (≥ 75%) or unanimous decision (100%)? Below is a list of some powers to consider addressing in your Delaware LLC Operating Agreement to determine who has the authority to engage in certain “big deal” transactions: Acquiring or selling […]

This business structure is referred to as “brother-sister” entities (as opposed to “parent-child” or subsidiaries). In this example, the assets of the real estate holding business and the fitness business are insulated from the liabilities of each other. If a customer claims they were injured while using the exercise equipment owned by ABC Fitness Management […]