Your Business Deserves To Thrive

Capital Contribution

On Behalf of | Jun 2, 2015 | Multiple Owners, Partnerships, Uncategorized

Post 1

When we advise businesses in early stages, we cannot emphasize the importance of well-drafted operating agreements of LLCs enough.  Some of the most common mistakes that we see in poorly-drafted operating agreements concern provisions relating to capital contribution by members, either failing to specify the amount of contribution (making it difficult to elicit contributions) or a cap (making members liable to continue contributing indefinitely).  This blog series looks at three New York cases where courts held that LLC members’ cash contributions are to be treated as loans, as opposed to capital contributions, in the absence of contrary agreement or provisions in an operating agreement.

Stay tuned for our next post.


About the Author


So-Eun Lee – So-Eun Lee is an associate attorney in the New York office of The R. Shawn McBride Law Office, P.L.L.C.  She concentrates her practice on business law.  So-Eun can be contacted at: (347) 921-0173 or [email protected].  Her profile is available on


R. Shawn McBride – R. Shawn McBride is the Managing Member of The R. Shawn McBride Law Office, P.L.L.C. which helps clients in legal issues related to starting companies, joint ventures, raising capital from and negotiating with investors and outside General Counsel functions.  Shawn can be contacted at: 407-517-0064; [email protected], or