Limited Liability Companies For Dummies, 3rd Edition

Chapter 12

Doing the Membership Shuffle

IN THIS CHAPTER

Understanding the basics of transferring membership

Setting up your operating agreement to manage transfers

Creating individual buy-sell agreements

Finalizing and amending your operating agreement

In Chapter 9, I explain the basics of an operating agreement and help you start creating your own. In Chapter 10, I go over how to choose your partners (carefully!) and structure your partnership. In Chapter 11, I show you how to bring on investors. After reading these chapters and putting your plan in place, unfortunately sometimes things just don’t progress as intended. In this chapter I show you what to do when your plans go awry and a partner needs to go. I also show you how to finish your operating agreement and how to amend it when needed. Think of this chapter as your insurance plan: You structure your company and your operating agreement now in a way that allows you to get out of future problem situations with your partners pain-free.

I know this is a touchy subject to bring up with your partners — especially when you’re ...