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My lawyer told me my LLC operating agreement was basically a napkin note
I started a small landscaping biz in Austin 2 years ago and thought I had it all figured out. Drafted my own operating agreement from a free template online. Then my lawyer friend looked at it over beers and said I had no exit strategy and my profit split terms were going to cause a fight. He pointed out I didn't even have a buyout clause for if a partner leaves. Redid it properly with his help for $800. Has anyone else had a partner walk out and screw things up because of a bad agreement?
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paulb984d ago
Did you ever look at that first agreement and wonder what would actually happen if someone wanted out? I think the bigger issue here is people treat contracts like they're just paperwork to get out of the way. They don't think about the human side of it - people get greedy or scared when money's on the line. I've seen it happen in bands, sports teams, even friends splitting a rental property. No one wants to talk about the bad stuff until it's happening. That lawyer fee probably saved you a lot more than $800 in the long run.
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the_thomas3d ago
My buddy Drew learned that the hard way when his band split up over a tour van - the guy who owned it walked off with half the merch money and there was nothing they could do. The $300 they saved by skipping a lawyer cost them about four grand in the end.
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