Business modification means anything that changes or modifies the existing structure of a business or its ownership. A general partner of a limited partnership found out after twenty years that he is personally liable on behalf of his family’s business, so he wishes to change to an LLC. An LLC would like to bring in a new member in order to expand its business capabilities or add an investor.These are examples of everyday issues that businesses face and that need to be done properly. A recent case which we handled successfully for a client turned radically when it was discovered that their prior counsel had failed to correctly issue stock to a “stockholder.” Although they would never admit it, the facts are that the case altered dramatically when that little bitty issue turned into a game changer.
Many, many people sell their “business” and don’t have a clue what they just sold. If an LLC, did they sell the entire LLC, their membership units, the assets? These are issues that, if not handled properly, can cause any number of problems after the transaction has been presumed to be concluded.