Attorney Letter on Doing Business as an LLC

I mail LLC owner/members a ten to fifteen page letter about LLC operation and specifically about their LLC Operating Agreement. The length of the Attorney Letter depends on whether it’s a Single Member LLC or Multi-Member LLC and on what provisions are in the particular operating agreement.

LLC owner/members are asked to read the letter before they review the draft LLC Operating Agreement. The Attorney Letter helps them understand their operating agreement and gives them additional information with which to consider modifications.

The letter also gives tips on future LLC operation and explains ways LLC owner/members can enhance rather than undermining LLC asset and liability protection. Specific subjects such as insurance, management, buy-out, LLC owner/member withdrawal, contract and tort liability, executing LLC documents, piercing LLC liability protection, LLC distributions, transfer of LLC interests, LLC member and/or manager fiduciary duties, and use of the “sample” documents included in the LLC Package are addressed.

The Attorney Letter is a tool to help LLC owner/members understand their LLC Operating Agreements, give them tips for future LLC operation, and emphasis future LLC operation that will strengthen LLC asset and liability protection.

The Attorney Letter is not and cannot at its length be a “users manual” for LLC operation but I have tried to hit all the highpoints of LLC operation, especially those concerning asset and liability protection. The letters vary in content depending upon the text of the LLC Operating Agreement which I believe makes them more relevant to the clients and perhaps more readable. I want clients to read and remember the points in my letter because proper client LLC operation will enhance and not undermine LLC asset and liability protection.

When I organized “Form” LLCs I did not use an Attorney letter.

“Want of care will always create want of money.” George Saville, barrister, First Marquess of Halifax, and Member of Parliament - from Eugene C. Gerhart’’s Quote It, Memorable Legal Quotations published by William S. Hein & Co., Buffalo, NY, 1987.