LLC fiduciary duties are, in essence, the duties of members and managers to act ethically toward the LLC. Fiduciary duties also represent the “team spirit” of an LLC, which can be critical to its success. The two main fiduciary duties are the duties of care and loyalty. Operating agreements should normally spell out the fiduciary duties of the members and managers of a multi-member LLC comprehensively, so that they’ll know how to act as members and managers from Day 1.
The excellent post under the link below addresses a situation involving a potential forced sale of LLC property upon the death of a member—a cautionary tale for any LLC lawyer.
The Critical Importance of Having Bullet-Proof Procedures for Ensuring Receipt and Action on Service of Process
The very sobering discussion under the link below makes clear the critical importance to LLCs, their members and their managers of having bullet-proof procedures for ensuring receipt of service of process and response to service of process. If the registered agent of an LLC is its law firm, this will generally not be an issue. However, the registered agent of many smaller LLCs is one or the LLC’s members or managers or even a friend or relative of one of these persons. This arrangement can lead to a legal disaster.