• Are there exceptions to Limited Liability?

    Even though LLC owners enjoy the benefits of limited personal liability for many transactions of their business, it is important to note that this protection is not absolute. The owner of the LLC may be held personally responsible if he/she: purposefully does something illegal, fraudulent, or clearly wrong that causes injury to the company or […]

  • Is it necessary to have LLC meetings?

    Failure to have shareholder or director meetings can cause the corporation to be subject to alter ego liability, although this is not typical of LLCs in most states. For example, in California the failure of an LLC to have meetings with members or managers is normally not regarded as grounds for enforcing the alter ego […]

  • Is it necessary to have an Operating Agreement?

    It is possible to have a written operating agreement in most states, but you are not advised to begin a business without one. The following are a few reasons why an operating agreement is necessary: By showing that you have been meticulous about organizing your LLC, it aids in guaranteeing that courts will be respectful […]

  • What does an LLC Operating Agreement signify?

    It allows you to structure your financial and working relations with your co-owners in a way that best fits your company. Your co-owners and you determine each owner’s percentage of ownership in the LLC, his/her rights and responsibilities, his/her share of gains or losses, and what will become of the business in case one owner […]

  • Is an LLC or an S corporation better?

    Even though the special tax status of the S corporation does away with double taxation, it doesn’t have the elasticity of an LLC in distributing income to the owners. Various classes of membership interests are offered with an LLC, whereas you can only have one type of stock with an S corporation. In an LLC, […]

  • Who should establish an LLC?

    If you are worried about personal exposure to lawsuits that arise from your company, you should think about forming an LLC (Limited Liability Company). For instance, you might be concerned that your commercial liability insurance will not completely protect your personal assets from possible slip-and-fall lawsuits or claims by your suppliers for unpaid invoices if […]