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Season 2, Episode 4 - How can businesses with equal 50/50 co-owners of an LLC deal with potential deadlocks through specific provisions in their operating agreements
Many businesses are founded and operated by equal co-owners. But what if there is a dispute about a significant business decision? How can it be handled when each of the owners has an equal ownership interest and vote in the business? And what happens to a business where there is a deadlock between the co-owners? Businesses with two owners who each have a 50% ownership interest must confront this issue head-on. This podcast discusses the problem that sometimes arises and how businesses can deal with it at the outset by including specific provisions in their operating agreements.
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By Dan SmithMany businesses are founded and operated by equal co-owners. But what if there is a dispute about a significant business decision? How can it be handled when each of the owners has an equal ownership interest and vote in the business? And what happens to a business where there is a deadlock between the co-owners? Businesses with two owners who each have a 50% ownership interest must confront this issue head-on. This podcast discusses the problem that sometimes arises and how businesses can deal with it at the outset by including specific provisions in their operating agreements.