Operating Agreement Mistake that Tears LLCs Apart: Failing to Specify How Members Will Be Paid for Their Labor
Photo by geralt on Pixabay As an attorney who helps small business owners who have disputes with their co-owners, I see a lot of California limited liability company operating agreements. Many are well-prepared and thoughtful documents that help founders protect themselves and their company. But many LLCs have problems that can lead to major disputes including expensive lawsuits between the owners…
What Happens When a Contract Fails?
In the United States, people enter into contracts under the implied covenant of good faith and fair dealing. This means all parties that sign a contract agree to keep their word and treat one another with respect — without using trickery or unfair tactics to avoid their contractual obligations. Sadly, not all contracts go according to plan. Sometimes, legitimate obstacles, such as delays…