"Mandatory" Rules of the South Carolina LLC Act

There are certain provisions of the South Carolina LLC Act that an LLC cannot change. These provisions are called the “mandatory” rules. Do not confuse the “mandatory” rules with the South Carolina Default Rules.

LLC owner/members are not likely to read the LLC Act so they will not know what the “mandatory” rules are unless they are told. I draft LLC Operating Agreements to be in concert with the “mandatory” rules so as not to misled LLC owner/members. I also restate a number of the “mandatory” rules in the LLC Operating Agreement (see Winding Up LLC and Mandatory LLC Owner/Member Expulsion Rule).

When I organized “Form” LLCs I did not restate any mandatory rules.