In Texas, people who want to start a business have multiple options when deciding on what formation to use. Depending on the product or service they are selling, their financial situation and goals in general, the choices can vary.
One strategy that can be very useful is forming a limited liability company (LLC).
An LLC can be viewed as a combination of a partnership and a corporation. Its structure will determine how it operates. Owners are known as members of the LLC. The liability for the members hinges on how much they have invested.
The members can manage the LLC themselves or they can have managers to handle it.
What should LLC members know about meetings and voting?
One aspect of an LLC to consider is how meetings and voting must be conducted based on state law.
Since an LLC consists of governing individuals, members or members of a committee, they must be informed of the planned meetings. The members will have equal voting rights, and majority votes will dictate how decisions are made.
However, since it would be impractical to have every single decision come up for avote, actions can be approved by a governing authority, if one exists. For activities that go beyond the normal course of business, there must be an affirmative vote of all governing bodies in the LLC.
For example, members don’t need to hold a meeting whenever they need to get refills for fundamental office needs like pens, printing equipment and office supplies. Meetings would be required for large-scale decisions like relocating, expanding or seeking funding.
Votes can be done in person or in writing.
Comprehensive assistance can be a key to business success
Whether those who are involved in the LLC are experienced in business or are just starting out, it is wise to have professional advice.
Many times, those starting any type of business will think they can get all the advice and help they need by checking the Internet or simply going forward on their own and waiting until challenges arise before seeking help. This can be a mistake.
To avoid legal problems and make sure the LLC has a good chance at success, it is useful to consult with qualified professionals in business law from the outset.