LLC Operations: Common Pitfalls and Best Practices (On-Demand)

Course Description

Limited liability companies are popular for a reason – they’re easy to start and generally provide the protection business owners seek.  But it’s easy to fall into common traps in running LLCs that can wipe out that protection and leave the owners personally exposed.  Come learn about how to avoid these common pitfalls and best practices to ensure that your LLC runs smoothly.

Principles

• Why have an LLC in the first place?
• Piercing the corporate veil – what does it mean and why does it matter
• Day-to-day practices that affect LLC protection
• Considerations for single and multi-member LLCs
• The parent-subsidiary relationship
• Planning ahead for risk and other contingencies

Syllabus

1. Overview of LLCs
   a. What are the benefits and risks of LLCs
   b. Other corporate structures to consider
   c. Once you select LLC, what are the first steps to make sure you avoid common issues
   d. Drafting a workable operating agreement
2. Piercing the Corporate Veil
   a. What is the effect?
   b. Steps to pierce the veil
   c. How to avoid piercing
3. Considerations for single and multi-member LLCs
   a. Additional areas of concern for single-member LLCs
   b. Dealing with conflict within the multi-member LLC
4. Considerations for the Parent-Subsidiary Relationship
   a. How to appropriately structure and work within the parent-subsidiary relationship
   b. How to avoid imputing liability from the parent to the subsidiary and vice versa
5. Day-to-Day Practices that Affect LLC Protection
   a. Funding Sources
   b. Signing Documents
   c. Commingling Assets
   d. Etc.
6. Planning Ahead for Risk and Other Contingencies
   a. Insurance considerations
   b. Transferring ownership of the LLC via sales, estates, and involuntary transfers
   c. Managing the relationships within the LLC

Instructor

Alexis Preskar, Esq.