LLC Operating Agreement and Non-Compete

Sean Robertson (630) 364-2318 or (312) 498-6080
Robertson Law Group, LLC

Today, a small business owner called me regarding reviewing an LLC Operating Agreement and a Non-Compete Agreement. An LLC Operating Agreement is essentially your Small Business Guide in how to operate your business. This LLC Operating Agreement explains how you elect new members and managers. It also explains how key decisions are made and what the process is for making key decisions. A LLC Operating Agreement is fundamental to your Small Business success.

A non-compete agreement is a written agreement where you either have an independent contractor or employee sign to prevent them from entering into business against you, or it is an agreement that an employee or independent contractor signs to prevent them from entering a business venture against them.

For example, Joe (made up name) is a small business owner that wants to hire a former employee of a Big Company to work for him. In this example, the small business owner wants to know the liability risks of hiring the former employee of a Big Company.

Answer: High liability because a Big Employer may sue the former employer to send a message for their fellow employees. In reality, non-compete agreements have a tough time standing up in a court of law. Courts generally not prefer non-compete agreements.

In conclusion, Robertson Law Group, LLC is a business, asset protection, and corporate law firm concentrating in assisting small to medium sized businesses and their owners. Sean Robertson is the Principal of Robertson Law Group, LLC, which is based in Naperville, Illinois. Naperville is near Plainfield, Lisle, and Downers Grove, Illinois in the Western Suburbs. Sean Robertson may be reached at (630) 364-2318 or (312) 498-6080.