Can an LLC Member be Forced to Contribute to the LLC’s Debts?
Members of an LLC are required to pitch in equally for the LLC’s expenses and debts, right? Generally, no. In a recent unpublished opinion filed by…
No RICO Standing for Cannabis LLCs
In business litigation, a plaintiff will sometimes assert a claim under the Racketeer Influenced and Corrupt Organizations Act (RICO), a federal statute at 18 U.S.C. §1961…
LLC and Partnership Authority “Safe Harbors”
California’s statutes governing LLCs and general partnerships include “safe harbor” provisions making it easier for third parties to rely on the apparent authority of an LLC’s…
Does an Operating Agreement’s Arbitration Clause Apply to a “Purported” LLC Member?
If an LLC’s Operating Agreement contains a sufficiently broad arbitration clause, most disputes raised by the LLC’s members relating to the LLC will be sent to…
LLC “Lien Priority” Battle: Charging Order vs. UCC Financing Statement
A charging order is a device used by a judgment creditor to collect on a judgment against an LLC member. The charging order imposes a lien…
Alter Ego, Equity, and Reverse Veil Piercing for LLCs
The LLC Jungle blog covered “reverse veil piercing” in a 2019 post: “Reverse Veil Piercing” to Reach an LLC’s Assets” Normally, a business entity is considered…
A Dissolved LLC Can Still Recover Attorney Fees
An LLC Jungle post from last year addressed the issue of whether derivative claims can be pursued for a dissolved LLC. See: Can Derivative Claims be Pursued…
The DAO Jungle?
A DAO is a Decentralized Autonomous Organization. It’s a blockchain thing. How do DAOs relate to LLCs? And why are DAOs the subject of this post…
Title Insurance Booby Traps in the LLC Jungle
Title insurance is inexpensive for a reason. Unlike other insurance policies, it is not prospective in nature. It does not cover title defects or liens that…
LLC Money-Shuffling and “Alter Ego” Liability
The “alter ego” doctrine allows a creditor of a business entity to “pierce the corporate veil” and enforce the debt against the company’s individual owners. The…