In the early stages of forming a limited liability company (LLC), founders often rush through drafting and executing the operating agreement, the document that governs how the business will be run, how decisions will be made, and what happens when things go wrong. One clause that especially tends to fly under the radar in home-made agreements, or is left out entirely, is the unanimous consent provision. This can be a critical mistake. If you are a founder, investor, or member involved in any LLC, especially a closely held one, understanding this clause could prevent catastrophic internal gridlock down the line.
