Blog Layout

The Complexities of Federal Trademark Registration

Jimmy Brymer • February 6, 2024

Introduction

An Operating Agreement is a legal document that outlines the rules and regulations for how a limited liability company (LLC) will be operated. It is a crucial document for any LLC, as it helps to protect the personal assets of the LLC's members, defines the roles and responsibilities of each member, and establishes a framework for decision-making.

What is an Operating Agreement?

An Operating Agreement is a contract between the members of an LLC. It is a private document that does not need to be filed with the Texas Secretary of State or any other state or local authority, but it is strongly recommended that all LLCs have one in place.

Why is an Operating Agreement Important?


There are many reasons why an operating agreement is important for an LLC. Here are just a few:


  • Protects personal assets: An Operating Agreement helps to protect the personal assets of the LLC's members from liability if the LLC is sued. This is because LLCs are a type of business that provides limited liability to their members. This means that the members' personal assets are generally not at risk if the LLC is sued. The Operating Agreement helps solidify this protection and clarify that members are not responsible for other members’ personal liabilities as well.
  • Defines roles and responsibilities: An operating agreement helps to define the roles and responsibilities of each member of the LLC. This can help to prevent disputes between members and ensure that everyone is on the same page about how the LLC will be operated.
  • Establishes a framework for decision-making: An Operating Agreement establishes a framework for decision-making within the LLC. This can help to ensure that decisions are made in a fair and orderly manner. Texas allows LLC’s a lot of freedom as to how to settle things like ties or disputed decisions, even things like letting the members flip a coin to break a tie!
  • Provides a roadmap for the future: An Operating Agreement can provide a roadmap for the future of the LLC including goals, milestones, and future responsibilities of members. This can help to ensure that the LLC is on track to achieve its goals.


What Should You Include in Your Operating Agreement?

There are many things that you should include in your Operating Agreement. Here are just a few of the most important things:


  • The name of the LLC: This should be the same name that is registered with the state.
  • The names and addresses of the LLC's members: This is important for legal purposes.
  • The LLC's management structure: This will determine how the LLC will be managed. There are two common management structures for LLCs: member-managed and manager-managed. Depending on how you want your LLC to operate, one method may be better than the other.
  • The allocation of profits and losses: This will determine how the profits and losses of the LLC will be shared among the members. Popular options are to divide it evenly amongst the members or managers, or to divide it based on equity in the LLC.
  • The procedure for admitting new members: This will determine how new members can be admitted to the LLC.
  • The procedure for withdrawing or terminating membership: This will determine how members can leave the LLC.
  • The procedure for dissolving the LLC: This will determine how the LLC will be dissolved and have its affairs wrapped up.


How to Get an Operating Agreement

You can get an Operating Agreement from a number of sources. You can find templates online, or you can hire an attorney to draft one for you. While online templates may be sufficient for a single-member LLC, there are many specific terms and clauses that are often left out of online templates or are not configured to suit you and your business. Therefore, despite the additional cost, we strongly recommend having an experienced attorney draft your Operating Agreement.


Additional Benefits

In addition to the information above, here are some additional benefits of having an Operating Agreement:


  • Can help to prevent disputes between members: An Operating Agreement can help to prevent disputes between members by clearly defining the rights and obligations of each member.
  • Can help to attract investors: While a less-common concern, investors are often more likely to invest in an LLC that has an Operating Agreement in place. This is because an Operating Agreement shows that the LLC is well-organized and that its members are serious about their business. In fact, most banks and other organizations require a copy of your Operating Agreement before they’ll do any kind of business with you, even before they let you open an account with them!
  • Can help to avoid litigation: An Operating Agreement can help to avoid litigation by providing a clear roadmap for how the LLC will be operated. This can help to prevent disputes from arising in the first place and how to resolve the disputes once they do arise.


Contact Ringel & Brymer, PLLC, to discuss your options for your Operating Agreement and learn how we can help you and your business with a well-drafted Operating Agreement.

Lost Evidence, Lost Case? Spoliation in Texas

By James Ringel • July 27, 2024
In a court case, evidence is king. But what happens when that evidence goes missing? Spoliation of evidence occurs when relevant evidence is destroyed, lost, or altered, hindering the ability to present a fair case. Texas law takes spoliation seriously. The Duty to Preserve Texas law imposes impose a duty on parties in a lawsuit to preserve relevant evidence once they have notice of a potential claim. This notice can come from a lawsuit being filed or when a reasonable person would anticipate litigation, such as receiving a letter from an attorney’s office about a potential suit being filed (often called “Cease and Desist Letters” or “Demand Letters”). The Two-Step Spoilation Analysis Texas courts use a two-step approach to spoliation: Did Spoliation Occur? The judge decides if a party had a duty to preserve evidence and then breached that duty by intentionally or negligently failing to do so. This considers factors like the nature of the evidence and when the duty to preserve arose. What's the Remedy? If spoliation is found, the judge determines an appropriate sanction. This can range from excluding certain evidence from trial to deeming certain facts, and even dismissing the entire case/defense. The Spoliation Instruction A key consequence of spoliation is the "adverse inference instruction." If a party spoliates evidence, the jury may be instructed to presume the missing evidence would have been unfavorable to that party. The Importance of Taking Action If you believe evidence relevant to your case has been spoliated, it may be something to mention to your attorney; similarly, if you’ve been placed on notice that someone may file suit against you, make sure that you preserve all possible evidence!
two glasses of alcohol with straws on a wooden table .

Navigating the Discovery Maze: An Overview of Discovery Rules and Levels in Texas

By James Ringel • February 6, 2024
In the intricate world of civil litigation, discovery plays a pivotal role in unearthing the evidence necessary to resolve disputes. In Texas there are a set of rules and levels governing the discovery process, ensuring that both parties have a fair opportunity to gather information and prepare their cases. This blog post delves into the intricacies of discovery rules and levels in Texas, providing information for those navigating this complex legal landscape.

Navigating the Maze of Federal Trademark-Why Hiring an Attorney is Your Best Bet

By Jimmy Ringel • February 6, 2024
In the bustling world of commerce, trademarks stand as beacons, identifying and distinguishing the source of goods and services. A well-protected trademark is an invaluable asset, safeguarding your brand reputation, boosting customer loyalty, and shielding your business from infringement. While the process of obtaining a federal trademark registration may seem straightforward, it's a complex legal undertaking riddled with nuances and pitfalls. This is where an experienced trademark attorney comes into play.
Share by: