We all are always one decision away from a totally different life, and even businesses know that. In fact, we can either see the business world through rose colored glasses, and enjoy all the advantages, or see it as a road fraught with danger and menace, where your every step is vulnerable and every decision is hazardous. But we at Prestige Auditors think that being an extremist is not an option; you have to see and perceive the reality as it is!

For example, if you see that an employee works well, thereby helping your company grow, you promote them for their hard-work and commitment, or if you see that someone’s work and behavior result in numerous conflicts and a rapid decrease in sales, the only thing that’s possible is either to train them according to your business guidelines, or simply fire them!

But everything is different with LLC Members, especially when you have to remove them from your team…

What to Do?

You surely know that without a document called Articles of Organization you wouldn’t be able to open your Limited Liability Company, and that every single detail should be included there. This is when the elements of this document come in handy: especially when you have to remove an LLC member out of your team. Ideally, at the dawn of opening your business, you should have included provisions concerning not only the management structure and duration of your company, but also the process of removing a member. So, if a similar situation happens, just read your Articles of Organization again, and follow the instructions that were originally established by none other than you.

What if Articles of Organization Don’t Have Such Regulation?

Remember the times when we were telling you that despite the non-compulsory nature of operating agreements, having one for your business is still a must? This is when you realize how important they are, especially when you suddenly, by any chance, find regulations concerning the removal of an LLC member; sometimes you just don’t realize the value of something until you really, really need it, right?

What if Operating Agreements Don’t Have Such Regulations?

Unfortunately, even the most private and most internal matters should be somehow regulated, and if your company doesn’t deal with that issue, state laws will. This is when you have to follow the rules which are dictated by the state you’re working in, and which are unfortunately, too general for you!

So, let’s look at the bigger picture: you want to remove an LLC member, but somehow, you failed to include provisions in two of the most fundamental documents of your company. Now, you have to deal with it either alone, with the help of negotiations, or with the help of all too general and all too vague state laws.

What is Wrong with State Laws?

Nothing fundamental is wrong with them. It’s just that state laws don’t consider voting as a solution to this problem, so you automatically should hire an attorney and become involved in the court of law which is not only time- but also money-consuming!

Conclusion:

Before starting your day-to-day business operations, make sure you put your heart and soul into the main documents of your LLC. As you can see, they are more valuable than they seem in reality; so if you’re having problems with the notion of these papers, give us a call and we will help you create them for your business!

 

 

 

 

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