Late Capital Contributions

In a Multi-Member LLC there is a potential for problems concerning future LLC owner/member capital contributions. Now that I draft my own LLC Operating Agreements, I use the Pre-Organization Questionnaire Letter to raise this issue up front by offering LLC owner/members various responses to the potential problem of late payments or non-payments.

Regardless of the LLC Operating Agreement provision decided upon by the clients, there is an educational benefit in simply having LLC owner/members consider the future capitalization of their LLC business or investment (see the “Education” paragraph at “Form” LLCs).