Advertising Material

Advertising Material


Purpose: If You Do Not Know Where You Are Going, How Will You Know If You Have Arrived

As a general proposition, LLCs organized in any of the states may engage in any lawful business or activity.1 While the purpose of any particular LLC may not be expanded in the articles of organization and other organic documents,2 it is permissible to restrict the purpose of a particular LLC in the articles of organization and other organic documents.3 More often than not, if the purpose of a particular LLC is addressed in either the articles of organization or the operating agreement, the purposes are nothing more than a generic statement that the company “may engage in any lawful activity or business.” Such a generic formula will ultimately have consequences; whether or not those consequences are advantageous or detrimental is dependent upon your position in the dispute.

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