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Dallas Business Law Blog

Does A New LLC Need An Operating Agreement?

When forming a limited liability company (LLC), business partners often wonder whether they really need a written operating agreement. At the outset, they may feel like they are all on the same page, so putting it in writing in an operating agreement seems like an unnecessary expense. However, this single document could prevent costly partnership disputes that may arise later, and the beginning is the perfect time to create one.

When Should A Business And A Vendor Break Up?

The recent end of the partnership between Sears and Whirlpool illustrates that no business relationship lasts forever. For many businesses, the real challenge is determining when to bring a vendor partnership to a close. That question is complex, but looking at the end of the relationship between retailer Sears and appliance manufacturer Whirlpool can offer some lessons on timing.

Why It's Crucial Not To Commingle Personal And Company Assets

Limited liability companies (LLCs) are entities unto themselves, separate from the members that comprise them. Because of that, it's imperative that members not mix their personal assets with those of the business, either by freely using business assets in a personal capacity, or by lending their own personal assets for business use.

Similarly, it's important that the financial statements and other records from the LLC show independence as well. And any business dealings must be done strictly on behalf of the LLC as well. For example, a member of an LLC cannot do business on behalf of the LLC but give out his or her personal business card or write a personal check.

Why newly formed LLCs need an operating agreement

Some people who are forming a limited liability company (LLC) balk at the idea of creating a written operating agreement. They believe it is too large of a cost for a new company, and the agreement can always be written at a later date.

The reality is that it is important for LLCs to take the time and ensure they have an operating agreement in place.

Employment Law- Class & Collective Action Waiver Does Not Violate NLRA

On August 7, 2017 the federal 5TH Circuit Court of Appeals again decided a case holding that requiring job applicants to sign a class and collective action waiver and subsequently enforcing that waiver does not violate §8(a)(1) of the NLRA. In this case, unlike the D.R. Horton and Murphy Oil cases the context did not involve an arbitration agreement. The non-unanimous opinion was issued in Convergys Corporation v. NLRB. Until a decision is reached by the U.S. Supreme Court there remains a split in the Circuits about this issue so caution should be exercised by attorneys and employers in relying on the opinion.

Is Texas A Good Place For New Businesses?

If you are considering opening a business, it can seem as though the odds are against you. The harsh reality is that about 20 percent of new businesses nationwide do not even make it long enough to celebrate a one-year anniversary. Far fewer make it to a five-year anniversary.

There is something to the old cliche about "location, location, location." One of the most common reasons for a new business's failure is a bad location. The state where a business launches can make a big difference. According to a study from WalletHub, Texas is the second best state for new businesses.

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