Limit My Liability!
You want to start a new business, and think that a limited liability company (LLCs) is the best bet for you. You are in good company. There are more than 10 million LLCs in the United States today and that number is growing. Why an LLC? Many people elect to create LLCs because when drafted properly it has the right combination of limiting liability, continuity of management, and ease of transferability of assets.
Ownership: LLCs, unlike traditional partnerships, may own property in its own name and members do not have a direct interest in this property.
Limited Liability: LLCs limit the liability of its members because an LLC is a separate legal entity apart form its members. The LLC is liable for claims against it, not their members and managers with a few notable exceptions.
Transferability of Assets: Because of how LLCs are formed, purchasing membership rights in an LLC allows third parties to purchase indirect interests in the LLC’s assets, like contract and licensing rights that may not otherwise be transferable.
Continuity of Management and Continuity of Life: An LLC can continue on even if a member or manager dies or disassociates themselves from the LLC.
Do you want to limit your liability, and start a Limited Liability Company? If you are, call me, Jeff Soud.