Hi I’m Alex Shahrestani with Shahrestani Law; I’m based in Austin, Texas, and today I’m going to tell you about 9 times you might need to make and keep records of an LLC member or manager action.
Remember, that even an informative video like this one can’t substitute for advice from your own attorney, so if you need help, make sure to contact one.
When picking an entity for your company, a lot of people opt for the LLC because it’s often called a more flexible and simpler structure than other options. This is true in a lot of ways, but it’s a best practice to keep good records, just like you would with a C-Corp. If you don’t, you can open yourself up to liability in lawsuits, and one of the main reasons to even form a business entity is to protect yourself from liability.
In this video you’re going to learn about nine circumstances where you might have to make and keep records of a company action.
The first thing to note, is that your company agreement, also called an operating agreement, will specify when the members or managers have to vote on an issue. That being said, here are nine common ones.
One, When you’re amending your operating agreement.
Two, When someone wants to sell or transfer their ownership
Three, When you want to appoint a manager, or CEO or other executive
Four, when expelling a member
Five, when calling an unscheduled meeting
Six, when distributing earnings
Seven, when taking on a large amount of debt
Eight, when closing down or selling the company
Nine, when skipping a meeting
That’s it - nine situations where your LLC might have to take a vote. Don’t substitute this video for your own attorney’s advice, but hopefully it should give you a heads up about when you need one.
If you liked this video and found it helpful, make sure to check back for more - bookmark it, subscribe, do what you gotta do to keep yourself informed.
I’m Alex Shahrestani with Shahrestani Law I’m based in Austin, Texas, and I’ll see you next time.
Alex Shahrestani once again presented at EFF-Austin (in conjunction with the Texas Opportunity and Justice Incubator), this time addressing the use of technology to bridge the justice gap, alongside fellow panelists Arlo Gilbert (Osano) and Joseph Cooper (Justice For Me).
The General Data Protection Regulation (GDPR) is a robust piece of privacy legislation coming out of the European Union. You might think that being in Austin, Texas, or anywhere outside of the EU would protect you from the obligations, but you’d be wrong. If you collect data on anyone currently in, or a resident of, the EU, then you are subject to the law. The consequences for failing to comply can be huge - fines up to 4% of global revenue. That’s a huge hit. So what can you do about it?
An overly aggressive man in a mask is telling you to empty your wallet. You sigh and explain to him, the government already did that, and besides, you're in line to deposit a check - who carries cash anymore? You see the gunman's eyes narrow in fury, as he lifts his gun and shoves it in your face, telling you to keep your mouth shut. Fear suddenly grips you, and flashing before your eyes is a question -
Is it legal for Batman to carry and use his weapons?
Shahrestani Law is part of the Texas Opportunity and Justice Incubator's Fourth Cohort. The Texas Opportunity and Justice Incubator (TOJI) is an initiative by the State Bar of Texas to provide attorneys dedicated to bridging the justice gap with the resources necessary to succeed. TOJI also helps attorneys bake pro bono services into their practices - each member performs 10 hours of pro bono service per month. The program is 18 months long, and encourages outside-the-box thinking in terms of services, pricing, and structure.
The latest cohort has attorneys in a variety of practice areas, including business, criminal, family, and immigration law. The members rely on weekly trainings given by State Bar employees, as well as the experiences of the fellow cohort members to support their practices. From keeping websites up-to-date, to learning new areas of law, being able to ask your neighbor for help keeps the attorneys flexible in providing legal services.
Read more about TOJI at this link.
When you think of a professional athlete, you probably don’t think about what they’re planning to do after they retire. Turns out, most athletes don’t either, but a small number of them are blazing the trail into entrepreneurship.
The future is not predetermined. The last 75 years do not guarantee the next 75 in terms of military or diplomatic dominance.
Conflict in the “gray zones” has expanded - that mean’s undeclared conflict such as the conflict in Crimea or a cyber-conflict. And the rate at which information spreads has lent itself to the creation of a high-velocity environment.
Cybersecurity is entering mainstream consciousness more and more. Every attack that passes raises the question, a little bit closer to home - will I be next?
A recent study conducted by Sophos and Vanson Bourne of 3,100 IT managers globally had some surprising results.
An insurance policy buried a $10,000 prize deep in the contract, stating, "If you've read this far, then you are one of the very few Tin Leg customers to review all of their policy documentation," the contract then provided instructions for the winner to redeem the prize.
Alex is a startup-tech nerd trapped in an attorney’s body. One of his favorite hobbies is hearing about other people’s new ideas and watching them succeed. He has a few ideas of his own, and, like many attorneys, enjoys talking about them. If you want to talk about your projects or hear about his attempts to automate the practice of law, reach out through the contact page.