Often, new business owners question whether they need a member control agreement. They commonly don’t know of the possible pitfalls of operating without one. In this article we will address why a member control agreement for an LLC is a necessary component for the business. A member control agreement should address four primary issues.
Determine Ownership
Operational Control
Succession Planning
Protecting Limited Liability of Single Member LLCs
While they can, and usually do address more, these four will be covered below, as they are necessary components to most LLCs.