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This blog series explores the things every business owner should know about LLC operating agreements and the provisions to include in the agreement.

One of the most appealing attributes of the limited liability company and why it has been so widely adopted is the flexibility it affords the owners with respect to management. LLC operating agreements are for an LLC what bylaws are to a corporation. The operating agreement can be thought of as providing the “laws” of the business, laying out how the company will be managed. The operating agreement provides the rights and obligations of the members, including members’ management abilities and economic interests. Without an operating agreement, limited liability companies are governed by the default provisions (in Washington, they are provided in Chapter 25.15 of the Revised Code of Washington). This inVigor Law Group blog series includes insight into some…

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King County resident Gina Kim posted for sale on Ebay a handbag she had purchased at a Coach store. She then received a cease and desist letter from Gibney Anthony, Coach’s legal representatives. The letter directed her to sign a statement indicating she took wrongful action in seeking to sell a counterfeit product, threatened up to $2 million in penalties, and demanded she pay $300 immediately. Now Ms. Kim, a 31-year-old Seattle Central Community College student, is filing suit.

She hired a Seattle law firm to represent her, and has now filed a complaint in federal court. The complaint, which can be read here, is seeking class action against Coach for (1) violation of the Washington Consumer Protection Act, (2) misrepresentation…

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