Legal Question in Business Law in Pennsylvania

Re: How many signatures are required ? LLC

When you create an LLC you and the other members will sign an Operating Agreement which will detail your relationship and governance of the company. Issues such a signing authority for checks and closings will be addressed in the Operating Agreement and your banking resolution. The Operating Agreement should also cover buy-sell procedures for voluntary sales of ownership interests along with what happens in the event of death, disability, divorce, and / or bankruptcy of a member.

Re: How many signatures are required ? LLC

You asked about certain demands of running a limited liability company.

Big question. Forming the company is the easy part. Actually getting an operating company going is very difficult. In the best case each party should have an attorney review and negotiate the agreement. (It is usually unethical for an attorney to represent more than one side to an agreement.) There are a number of considerations you must make. For example will the LLC be member managed or manager managed, there are strong reasons for each and one or the other might not suit your situation.

What about profits and losses, capital calls, allocation of duties, liabilities? Who controls what? Can two members gang up and force out the third, or can you agree that there must be an appraised buyout only. How will the appraisal occur. Who will be responsible for the money, what kinds of reports must be produced and when, can they be audited and who pays an audit?

As you can imagine, I could go on. Needless to say, who can sign an instrument is the least of your concerns when starting a business.

Good luck.

Regards,

Roger

Re: How many signatures are required ? LLC

This will be addressed in the operating agreement. If the members would prefer to allow purchase agreements to be signed by one member that can be detailed in the agreement. Contact me below or by phone (number at the website) to discuss further or for any other questions you may have. Consultations are free.