Articles Posted in Tag: llc

Under California law, an LLC member’s ability to take out a loan against an LLC-owned property depends on several important factors. Many LLCs explore this strategy as a means of freeing up capital without selling valuable LLC assets. Understanding the limits and permissions involved is crucial before pursuing this type of financing.  What is...

In California, Limited Liability Companies (“LLC”) are either managed by their members or designated managers, depending on how it is structured. These two kinds of management structures are the primary approaches to LLC management in California and are known as the (1) Member-Managed and (2) Manager-Managed structures. In member-managed LLCs, members are actively involved...

The statutory LLC buyout is a special remedy designed for lawsuits seeking to dissolve LLCs. After members of the entity sue to dissolve the business, the other members (all of them or some of them) have the statutory ability to avoid dissolution by buying out the membership interests of these “moving parties.” However, problems...

When business entities become subject to internal dissension, it’s not uncommon for several members to approach the court system and seek to dissolve the entity. Often, this is in the best interest of all involved. Sometimes, however, the other members, shareholders, or partners, do not want to let the business go. They feel it...

LLC’s are perhaps the most common form of business entity in the country on account of their approachability. But their large number means that plenty will and do fail. When this occurs, members of the LLC can file a lawsuit for “involuntary dissolution.” That said, the non-dissolving members have a way of fighting back:...