Unfortunately, they often overlook a very critical aspect of running a business: establishing the legal structure of their business. Many restaurateurs choose to organize their business as a limited liability company (LLC) because of the flexibility of the structure and tax benefits that LLCs offer. LLCs are flexible because they are governed by a unique, bespoke contract established by the restaurant`s stakeholders and called the LLC Operating Agreement. In addition to your financial structure, your LLC business agreement should define the management structure of your restaurant. While it is possible for all members of the LLC to participate equally in the management of the restaurant, it is preferable, in many cases, to make a member accountable for his or her management duties in order to avoid management conflicts. In addition, your company agreement should provide for members` right to vote, the date of meetings, and how to resolve any disputes. Rathbuns restaurant group includes Rathbun`s, Kevin Rathbun Steak, KR Steak Bar and Krog Bar, all in and around Atlanta. Bramble and Parks owned different servings of Kevin Rathbun Steak, KR SteakBar and Krog Bar, as well as a unit called 154 Krog, established in 2006 to operate restaurants. For all companies, Rathbun is, according to court records, the majority owner. Parks, however, left the company in 2016 and Bramble resigned in 2017. Last January, Rathbun told them of its intention to acquire their shares in the company after the arrangements for terminating the company agreements were made.
Bloom, who is not involved in the case, sees two important lessons to remember for every restaurateur considering a partnership agreement. Each state has a number of standard rules that impose the terms of commercial relations, unless the parties agree otherwise. . . .