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Limited Liability Company (LLC) Lack of Authority

Patton Sullivan Brodehl LLP

The Perils of Buying Property from an LLC with Competing Claims to Managerial Authority

Prior LLC Jungle posts have addressed the tricky issue of LLC managerial authority in the context of the LLC’s dealings with third parties... As referenced in those posts, under Corporations Code section 17703.01, when an...more

Falcon Rappaport & Berkman LLP

Constitutional Clash: U.S. District Court Landmark Decision Declares the Corporate Transparency Act Unconstitutional

In 2021, Congress passed the Corporate Transparency Act (CTA), which will be administered and enforced by the Financial Crimes Enforcement Network (“FinCEN”) of the United States Treasury Department, in an effort to implement...more

Ballard Spahr LLP

The CTA at Two Months: Key Updates and Action Items

Ballard Spahr LLP on

After years of anticipation, the Corporate Transparency Act (the CTA) officially went into effect on January 1, 2024. Now that we are two months into the CTA era, below are a few updates and recommended action items based on...more

Patton Sullivan Brodehl LLP

Why Having “Co-Managers” for Your LLC is a Terrible Idea

The trend in most real estate-related LLCs is to have a single appointed manager.  Under the LLC’s operating agreement, the manager typically has authority to make the day to day business decisions on behalf of the LLC, while...more

Patton Sullivan Brodehl LLP

LLC Managerial Authority and Dealings with Third Parties

One of the recurring issues I see in my litigation practice is LLC managers engaging in “questionable conduct” with third parties — outsiders to the LLC. By “questionable conduct,” I generally mean binding the LLC to...more

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