McBride for Business Blog

LLC Agreements: Backup Managers

February 6, 2017 // R. Shawn McBride // No Comments »

I work with a lot of companies, and I write a lot of LLC agreements in the course of a year. It’s often the central document to the business formation, or the future of a company. I’ve seen forms written by myself, I’ve seen forms written by many law firms and of course, I have seen Legal Zoom and other competitor’s forms.

You know what I rarely see in any of these forms? Backup management plans, particularly in the single owner situation. What happens if one of the owners is unable to participate in a business? Who runs the business? If the owner goes into a coma, what would happen to the business? Who would write checks? How would bills get paid? Who would be able to call customers? Who could negotiate a new lease?

These are simple, real world examples of terrible disruptions that could happen if a business is entirely dependent on one person. What we like to do in our LLC agreements is build protections in with backup management authority that kicks in when needed to make sure the company can keep moving forward, to make sure that the business is protected.

What’s in your documents? What planning have you done? Are you protected for these situations? Let us know in the comments below.

Backup plans for single owner situation.

LLC agreements with built-in protection.

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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Kimberly Vohsen.


About the Author

Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at or (214) 418-0258.


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