Legal Question in Business Law in California

Management Fee

What is the percentage that I can charge for a management fee?


Asked on 7/02/07, 4:41 am

2 Answers from Attorneys

Jonas Grant Law Office of Jonas M. Grant, A.P.C.

Re: Management Fee

Management of what? Resubmit your question with enough detail so that it may be answered.

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Answered on 7/02/07, 5:00 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Management Fee

In the absence of any information as to what you are going to manage, and for whom, I'd say the most general answer is "whatever the market will bear." This would usually be the case in a pre-contract situation. If you are in a contract that calls for you to receive "reasonable compensation" for handling some activity, such as winding up an LLC, a court would probably approve a fee request based either on a percentage of the money handled or so many dollars per hour based on the value of the service to the benefitted parties or possibly the market value of similar services.

There are additional statutory formulas for compensating people in the roles of executor, receiver, trustee in bankruptcy, court-appointed attirney, etc.

Further, there are situations in which you may not be entitled to a management fee at all. These would include scenarios where you are already under an obligation to manage and no additional fee is billable.

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Answered on 7/02/07, 11:48 am


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