Thursday, June 25, 2015

Nevada Multi Member LLC Operating Agreements Require Thought and Customization

New York "business divorce" lawyer Peter Mahler blogs about his experiences involving two members of a New York limited liability company who relied on LegalZoom to draft their LLC's operating agreement. New York's LLC act differs from Nevada's, but the key takeaways may be the same for Nevadans considering entering into a partnership based on an online, cookie-cutter document:
[When] the members’ relationship turned bitter .... shortcomings in the operating agreement also contributed significantly to the parties’ legal postures and willingness to risk litigation.... I’m not suggesting that every lawyer-drafted LLC agreement is a model of perfection, but I found ... that a standard form operating agreement being sold online by a major company to the unknowing public as a more affordable alternative to using a lawyer ... suffer[ed] from such a fundamental flaw that, in the end, only intensified the parties’ legal conflict.

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