Corporate & Business Formation:
We represent clients in forming and maintaining entities, including corporations and limited liability companies. Our firm also creates condominium documents, which includes not-for-profit corporations to function as the homeowners of condominium associations.
A corporation is intended to provide limited personal liability to the shareholders and provide certain tax benefits that may flow from the corporate form of the business. Such limited liability and tax benefits will be available, however, only if the shareholders and directors of the corporation follow certain formalities. In order to enjoy the benefit of liability protection, it is very important that the corporation be operated in a manner which maintains this separate identity. One of the principal reasons for using the corporate form is to minimize the chance that you will be held personally liable for corporate liability.
An LLC offers protection from liability and can be owned by other entities or trusts, providing layer upon layer of protection. Just like a corporation, a judgment against the entity will not flow through to the owner’s pocket. Likewise, a judgment against the person for something unrelated to the entity will not affect ownership of the LLC (if the LLC has more than one Member) because the most the creditor can obtain is a charging order against the LLC for any income that it actually distributes to the member. Furthermore, for members who wish to remain anonymous, an LLC offers such anonymity. The Articles of Organization, which is the only document filed, can be signed by an “authorized representative,” and not reflect the member’s name at all. One can also name the authorized representative or somebody else as the registered agent. Also, one can make the LLC Manager-Managed, without saying the identity of the Member(s).
Do you need the assistance of a Business Law Attorney? Call us today!