IMPORTANCE OF ENTITY PROTECTION – LIMITED PERSONAL LIABILITY
TYPES OF PROTECTION AND THE IMPORTANCE OF YOUR NEVADA BUSINESS LAWYER
Limited Liability Companies (LLC) (continued)
Although significantly advantageous, LLCs still retain shortfalls. First, there is no statutory requirement in Nevada for an operating agreement, which could lead to significant issues among members. Second, investors may be more comfortable investing in a corporation over an LLC, making accrual of financial capital difficult. Third, some creditors may require members of an upstart LLC to personally guarantee the LLC’s loans making them personally liable for the LLC’s debt. Finally, it may be difficult for others to determine who actually has the authority within an LLC to enter into a binding contract given the varied titles of LLC principles (i.e. managers, members, managing members, managing director, chief executive officer, partner, and president).
Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.
TYPES OF PROTECTION AND THE IMPORTANCE OF YOUR NEVADA BUSINESS LAWYER
Limited Liability Companies (LLC) (continued)
Although significantly advantageous, LLCs still retain shortfalls. First, there is no statutory requirement in Nevada for an operating agreement, which could lead to significant issues among members. Second, investors may be more comfortable investing in a corporation over an LLC, making accrual of financial capital difficult. Third, some creditors may require members of an upstart LLC to personally guarantee the LLC’s loans making them personally liable for the LLC’s debt. Finally, it may be difficult for others to determine who actually has the authority within an LLC to enter into a binding contract given the varied titles of LLC principles (i.e. managers, members, managing members, managing director, chief executive officer, partner, and president).
Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.
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