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Is Creating an LLC Appropriate for a Joint Venture?

Amyli McDaniel Specific Uses of an LLC No Comments

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Many existing businesses expand by starting a joint venture or business arrangement with another business or person.  If the arrangement involves an ongoing activity, one of the best methods of creating a structured joint venture is by creating an LLC to house the venture and using the LLC governance processes to create the parameters and responsibilities of the joint venture parties.

Without an LLC, you need to rely on addressing all matters in a general contract.  A limited liability company provides an automatic mechanism for handling ongoing business interactions and activities among several parties.  Because an LLC is subjected to very … Continue Reading

Can I transfer an existing personal debt to my limited liability company?

Amyli McDaniel LLC Members, LLC Protection and Its Limitations, Specific Uses of an LLC, Uncategorized No Comments

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Generally, when this question is asked it is two fold.  One, how are previously purchased equipment or previously incurred debt transferred to a limited liability company when an LLC is created later for a business.

Second, is it possible to not be personally liable for that debt after the transfer?

Question #1:  Yes, you can transfer any assets or debt to your LLC. You transfer assets with a document called a Bill of Sale and you assign debt with an assignment of the debt contract and obligation.  The LLC needs to agree to undertake the debt obligation by having its members formally … Continue Reading