It’s commonly said there are three things that matter with real estate: location, location, location. Likewise, three things matter when choosing a lawyer to set up a limited liability company: experience, experience, experience.
Tom Rutledge’s terrific blog, Kentucky Business Entity Law, last week highlighted a case in which the admitted inexperience of the lawyer who organized an LLC ultimately proved fatal to its existence and to a farming operation owned by the same family for four generations over 100 years. It’s a sobering lesson for anyone contemplating forming a new LLC for a start-up business or to serve as the ownership vehicle for an existing business.
Felt v Felt, No. 18-0710, 2019 WL 2372321 [Iowa Ct App June 5, 2019], involved a dissolution lawsuit among the three children of Richard Felt, the third-generation owner of an Iowa farm. One of the children, David, worked and lived on the family farm for decades when his father was diagnosed with cancer in 2013 and died in 2015. Richard’s will left his property equally to David and his two siblings, Susan and Daniel. Continue Reading Trouble Down on the Farm: The Importance of Using Experienced Counsel When Forming an LLC