An operating agreement could help protect your LLC

aprilfaxonvertumarketing — Mon, 01 Feb 2021 15:57:18 +0000

If you have recently created a limited liability company, you are likely well on your way to getting as many necessary documents completed as soon as possible, particularly those that are required under Kentucky state law. It may also be prudent to consider creating certain documents that are not necessarily required under state law but that could prove valuable, nonetheless.

For example, creating an LLC operating agreement could be worthwhile. Though state law does not require this document, it can contain various information and agreement terms that could help protect you and your company. Having this agreement on record could even act as a safeguard should a dispute arise, depending on the circumstances.

What should the agreement include?

This agreement can house a significant amount of important information regarding the operations of your company. Some of the information can act as an introduction to the company and include the LLC’s name, details regarding the Articles of Organization you filed with the state, the purpose of the business, its duration and more. The agreement can also include information about the LLC’s members and ownership interests. The following are a few details to include on that front:

Names of the original members
The percentage of ownership interest each founding member has
The number of monetary contributions each founder will make or has made
How new members will be accepted
Circumstances under which additional contributions from members may be required

It is also wise to include management information in the document, particularly whether one or more members will manage the company or if the company will hire an employee to act as manager. You may also want to include stipulations stating that, even if the company hires an outside party to act as the manager, the members of the LLC still have power to approve certain decisions before they can move forward.

How can you create the agreement?

Though an operating agreement is not legally required in Kentucky, you still want to ensure that the document is legally binding. If it is not, it may not offer as much protection in the future as you would hope, should the need for it arise. Fortunately, you can gain more information and insight into how to create a legally binding document and protect your company as best as possible.

Homeowners can be the ones to cause construction delays

aprilfaxonvertumarketing — Tue, 27 Oct 2020 18:23:44 +0000

You may have entered into the construction industry because you enjoy almost everything about the process involved in a new project. You like the creative aspect of coming up with ideas for homeowners who want an entirely new home or who want to make additions or other renovations. You also feel a sense of accomplishment when you see a project come together in the end.

Of course, construction can come with its difficulties as well, and you know that delays in a project can turn an enjoyable process into a nightmare. While you always do your best to ensure that you and your team stick to a schedule as well as possible, it is not uncommon for the homeowners themselves to cause delays.

How do homeowners cause delays?

As an experienced contractor, you may have already seen your fair share of issues arise when Kentucky homeowners commit any of the following actions that are likely pet peeves of yours:

The homeowners do not finalize the design plans early, or they decide to make critical changes after the project is already underway. In some cases, this could mean having to start over on certain sections of the project.
The homeowners do not have a set schedule they want to work by. You understand the importance of a schedule, but if the homeowners do not have a timetable or want to postpone work often, serious delays can occur.
They do not participate in pre-construction meetings. While you may appreciate the trust your clients have in you and your construction team, you know this lack of participation could result in homeowners misunderstanding certain aspects of the project.

While it is often homeowners who find themselves disgruntled with construction delays, such issues can cause major problems for your company as well.

What if a homeowner sues for delays?