If you’re forming LLCs for your clients, you have to know what is likely to happen to LLCs and their members when the LLCs or one or more members go bankrupt. For one thing, the answer is likely to involve LLC statutory pick-your-partner provisions and charging order provisions, which are key provisions in any LLC act—and which you and your clients need to understand.
The new blog post under the link below talks about a key issue that often arises when an LLC goes bankrupt. The blogger is Tom Rutledge, a national leader in the field of LLC law and practice.
This new Peter Mahler post demonstrates the difficulty of resolving disputes between the members of two-member LLCs. But remember: 70 percent of all LLCs are single-member; 25% are two-member; 5% account for all the rest. Drafting operating agreements for two-member LLCs is a tricky task.
Here’s the post:
If you’re interested in the law and taxation of family limited partnerships, you may find this article interesting: