LLC Answers

VIDEO BLOG POST:

Click below to watch a video we recently made that outlines the major benefits of an LLC for operating a small business.  The limited liability company is not the most common choice for small business owners precisely because it was designed to offer them most benefits for small businesses.  Watch Now!

The first step when a party has decided to sue a limited liability company LLC is to determine the best method for effectuating service of process on the LLC. This is also known as serving legal notice to the LLC of the lawsuit in a way that is proper notice under the laws.

The methods for service of process to a business entity like an LLC is set forth in the general service of process rules for each state and these can vary but in all states one confirmed method is by delivering the notice to the Registered Agent of the … Continue Reading

In every state in the US, the state legislature has adopted an entire set of laws governing the limited liability company in their state.  These laws are generally incorporated into one Act and so they are quite easy to find.

In a great majority of states, the name of the Act is the [State] Limited Liability Company Act so for example, the Virginia Limited Liability Company Act or the Georgia Limited Liability Company Act. But, in a few states, the LLC laws have a different … Continue Reading

This is the most common question we get at The LLC Expert- What is an LLC?  Then, How Does an LLC Benefit Me?

I think it is important for any new business owner to fully understand the importance of proper business and protection planning.  Starting a business off properly with an asset protection legal entity is the first key step.

I have written a prior answer post explaining briefly What is a limited liability company LLC. But if you want more information … Continue Reading

If you own real estate in your own name and want to transfer it to a real estate LLC in order to benefit from the limited liability protection afforded by a limited liability company, you will need to transfer the property in accordance with the real estate laws in your state.

This is usually done with a deed.  The most common way to do this when you are both the owner of the property and the owner of the real estate LLC is to use what is known as a quitclaim deed.  A quitclaim deed basically states that you are transferring … Continue Reading

Yes, a limited liability company can be formed for any lawful business purpose or purposes.  So, under the LLC laws, there is no restriction limiting an LLC to only doing one business activity.  One LLC can run both a consultancy and a store for example.

Having said this, many entrepreneurs form a separate LLC for each business.  This is because everything owned by each LLC will be subject to the business risks of all activities in the LLC.  For example, if a real estate investor owns three properties and all of them are owned and managed by one LLC, then if … Continue Reading

When it comes to choosing a name for your LLC business, there are two areas to plan for: (i) LLC name availability with the corporate agency in your state; an d(ii) trade name protection (which falls under trademark/trade name laws).

LLC NAME AVAILABILITY WITH THE STATE AGENCY WHO FORMS LLCs.

Choosing an acceptable LLC name for your new limited liability company should be done early in the pre-formation process.

In all states, you cannot use a name which is the same as or too similar to another name already being used by another limited liability company or other legal entities (such as corporations) … Continue Reading

There is little doubt that a limited liability company is an ideal vehicle for the new business and the small business.  This perfect fit does cause business owners to wonder if a business will easily outgrow the LLC as a legal entity for their businesses if the business grows and becomes a medium sized or even a large business.

The LLC is a great choice for medium and large businesses as well.  Regardless of size, the limited liability company offers businesses the same benefits and advantages including the most tax choices.

FIDELITY INVESTMENTS IS A LIMITED LIABILITY COMPANY

In 2007, Fidelity Investments, one … Continue Reading

I have had clients that have come to me and said that they have searched high and low looking for information about what is a "limited liability corporation?"  They have found information on corporations and on limited liability companies but nothing on this so called, "limited liability corporation."

Another misnomer is the llc corporation.

This is because there is no such thing as a limited liability corporation or an llc corporation. .  at least there is no legal entity with those official names. Many people mistakenly think there is an entity called a "limited liability corporation".  While the naturally interpretation of … Continue Reading

A "limited liability company" also known as an LLC is an unincorporated (meaning not a corporation) legal entity that is formed under state law and that gives its owners a layer of liability protection.

Compared to corporations and partnerships, the limited liability company is a much newer entity.  Wyoming was the first state to enact the laws to create the first kind of LLC back in 1977. Other states slowly followed but it was not until the IRS enacted regulations in 1997 to provide the limited liability company with tax choice flexibility that he LLC really took off.

The fact that … Continue Reading