bart, sam, and greg create big barns sales llc, a company that builds pre-constructed barns. they file the certificate of organization with the secretary of state and create an operating agreement for the llc. the operating agreement, however, does not address the how the company will be managed. the state statute regarding llc management states that in the absence of an agreement otherwise, llc's shall be member-managed. after a disagreement, two of the members want to dissolve the business, however, sam wants it to continue. what is the outcome?

The concept mentioned is an Operating Agreement. The answer is, the members can decide and remove the manager or dissolve the business if it's a majority decision.

An operating agreement is a crucial document used by limited liability companies to outline the business' fiscal and functional opinions including rules, regulations, and provisions.

This helps to govern the internal operations of the business in a way that suits the specific needs of the business owners. Since the LLC is member-managed, the members have the power and ability to make all the decisions for the company, remove the manager or even dissolve the company.

If an even number of owners don't agree, they can delay business operations which can harm the business.

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