Entrepreneurs could unknowingly agree to these waivers

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Small business start-ups are increasingly common in the information age, and the LLC form is one of the most popular entity choices for start-up founders. Simply googling "LLC operating agreement" reveals myriad fill-in-the-blank websites and ready-made forms for designing an entity structure on your own. Today, you can form a legal entity with the same amount of time and effort expended in ordering shoes on Amazon. LegalZoom boasts that it has helped launch over one million businesses since its inception in the early 2000s, and a user can form an LLC in five to ten minutes using its services. Similarly, RocketLawyer offers free LLC operating agreements online. Neither business formation service provider prompts the entity creator to select whether they agree to waive fiduciary duties for members or managers of the LLC in the fill-in-the-blank process and, instead, waives those duties by default. There is a concern that unwary, inexperienced, unsophisticated do-it-yourself entrepreneurs could unknowingly agree to these waivers. Should courts enforce such waivers?

Reference no: EM133599405

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