TYPES OF PROTECTION AND THE IMPORTANCE OF YOUR NEVADA BUSINESS LAWYER
Corporations
A corporation is a legal entity separate from the individuals that form it. The defining feature of a corporation is its legal independence from the people who create it. If a corporation fails, or dissolves, shareholders (in general) only lose their investment, and employees their jobs, but neither will be further liable for the debts owing to a corporation’s creditors, unless they made an agreement to be personally liable.
Corporations require a special legal framework that grants a given corporation legal personality. As such, corporations have the ability to sign binding contracts, pay taxes in a capacity separate from shareholders, and own property. In addition, a corporation’s legal personality grants creditors priority over corporate assets upon liquidation (or insolvency) and corporate assets cannot be withdrawn by shareholders, nor can assets of the firm be removed by creditors of a shareholder. Prior to making any decision regarding incorporation we highly recommend that you contact a Nevada business lawyer to ensure that your rights are protected and that the entity you choose best suits your business goals.
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.
Wednesday, July 28, 2010
Monday, July 26, 2010
BUSINESS OWNERS CAN FOCUS ON BUSINESS WHEN NOT WORRIED ABOUT PERSONAL LIABILITY
WHY IS IT IMPORTANT TO LIMIT PERSONAL LIABILITY?
By reducing the risk of personal liability in running the business, a business owner is able to focus on business operations, competition and profit, rather than the risk of personal ruin through some unfortunate event. Forming a valid Nevada business entity provides that comfort. In addition, entity protection comes in varied forms, each with the ability to lend itself to the specific needs of the business. This flexibility allows businesses to grow and become more competitive in an increasingly global market. There are also significant tax advantages to entity protection.
Although upcoming discussions may suggest that entity formation is relatively simple, it would be a mistake to form an entity without first consulting your Nevada business attorney because selecting the right entity that provides your business with the most liability and asset protection can be complex.
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.
By reducing the risk of personal liability in running the business, a business owner is able to focus on business operations, competition and profit, rather than the risk of personal ruin through some unfortunate event. Forming a valid Nevada business entity provides that comfort. In addition, entity protection comes in varied forms, each with the ability to lend itself to the specific needs of the business. This flexibility allows businesses to grow and become more competitive in an increasingly global market. There are also significant tax advantages to entity protection.
Although upcoming discussions may suggest that entity formation is relatively simple, it would be a mistake to form an entity without first consulting your Nevada business attorney because selecting the right entity that provides your business with the most liability and asset protection can be complex.
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.
Wednesday, July 21, 2010
LIMITED PERSONAL LIABILITY THROUGH ENTITY PROTECTION
ENTITY PROTECTION PROVIDES LIMITED PERSONAL LIABILITY
Introduction and the Importance of Your Nevada Business Lawyer
Operation of a business through the formation of a valid Nevada entity is important because it significantly limits one’s exposure to personal liability (especially in Corporations, Limited Liability Companies, and Limited Partnerships). In general, shareholders, officers and directors in a corporation; members of an LLC; and limited partners in a limited partnership are shielded from personal liability for the debts and obligations of the entity, which is legally treated as a separate “person.” This provides that unless there is misconduct, the owner’s own possessions are protected by law, if the business does not succeed or incurs liabilities itself. Prior to making any decision regarding entity protection contact your Nevada business lawyer to ensure that your rights are protected and that you choose the entity that best suits your business goals.
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.
Introduction and the Importance of Your Nevada Business Lawyer
Operation of a business through the formation of a valid Nevada entity is important because it significantly limits one’s exposure to personal liability (especially in Corporations, Limited Liability Companies, and Limited Partnerships). In general, shareholders, officers and directors in a corporation; members of an LLC; and limited partners in a limited partnership are shielded from personal liability for the debts and obligations of the entity, which is legally treated as a separate “person.” This provides that unless there is misconduct, the owner’s own possessions are protected by law, if the business does not succeed or incurs liabilities itself. Prior to making any decision regarding entity protection contact your Nevada business lawyer to ensure that your rights are protected and that you choose the entity that best suits your business goals.
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.
Monday, July 19, 2010
Benefits of Nevada's Foreign Trade Zones
INCORPORATING IN NEVADA
Businesses that are involved in international trade can benefit from Southern Nevada's Foreign Trade Zone #89, which is operated by the Nevada International Trade Corporation. In addition, Northern Nevada is home to Foreign Trade Zone #126. Foreign Trade Zones were created by Congress in 1934 and are sites within the United States in or near a U.S. Customs port of entry, where foreign and domestic merchandise can be considered as being in international commerce. A business can use these Trade Zones to defer or eliminate duties on merchandise brought into the United States.
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.
Businesses that are involved in international trade can benefit from Southern Nevada's Foreign Trade Zone #89, which is operated by the Nevada International Trade Corporation. In addition, Northern Nevada is home to Foreign Trade Zone #126. Foreign Trade Zones were created by Congress in 1934 and are sites within the United States in or near a U.S. Customs port of entry, where foreign and domestic merchandise can be considered as being in international commerce. A business can use these Trade Zones to defer or eliminate duties on merchandise brought into the United States.
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.
Wednesday, July 14, 2010
Nevada Law Protects Officers and Directors from Personal Liability
INCORPORATING IN NEVADA
The officers and directors of Nevada corporations enjoy substantial asset and liability protections. In general, Nevada law protects directors and officers from personal liability from acts committed on behalf of the corporation or by the corporation itself. In Nevada, in order to "pierce the corporate veil" to seek the personal liability of officers or directors, one must show fraud or manifest injustice - a very significant burden of proof. Generally speaking, the Nevada corporate veil protects officers and directors from any personal liability for acts committed in those capacities on behalf of the corporation.
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.
The officers and directors of Nevada corporations enjoy substantial asset and liability protections. In general, Nevada law protects directors and officers from personal liability from acts committed on behalf of the corporation or by the corporation itself. In Nevada, in order to "pierce the corporate veil" to seek the personal liability of officers or directors, one must show fraud or manifest injustice - a very significant burden of proof. Generally speaking, the Nevada corporate veil protects officers and directors from any personal liability for acts committed in those capacities on behalf of the corporation.
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.
Monday, July 12, 2010
Best Reasons to Incorporate in Nevada - Part 9
INCORPORATING IN NEVADA
Shareholders, officers and directors of Nevada corporations need not be residents of Nevada. Further, they are not required to be U.S. citizens. Nevada also does not require that shareholders or officer and directors meetings be held in the state. Additionally, all corporate offices and director positions may be held by a single person. In contrast to Delaware, Nevada does not require the shareholders or directors of Nevada corporations to report the dates and times of their annual meetings. Finally, entities formed in other states may be converted into Nevada entities so they can benefit from the advantages and flexibility offered to Nevada corporations.
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.
Shareholders, officers and directors of Nevada corporations need not be residents of Nevada. Further, they are not required to be U.S. citizens. Nevada also does not require that shareholders or officer and directors meetings be held in the state. Additionally, all corporate offices and director positions may be held by a single person. In contrast to Delaware, Nevada does not require the shareholders or directors of Nevada corporations to report the dates and times of their annual meetings. Finally, entities formed in other states may be converted into Nevada entities so they can benefit from the advantages and flexibility offered to Nevada corporations.
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.
Wednesday, July 7, 2010
Best Reasons to Incorporate in Nevada - Part 8
INCORPORATION IN NEVADA
Entity flexibility is one of the great features of incorporating in Nevada. With respect to stock, Nevada corporations may issue stock for capital, services, personal property, or real estate, including leases and options. Further, in contrast to Delaware, Nevada allows unlimited stock of any par value. In addition, Nevada corporations may purchase, hold, sell or transfer shares of its own stock. Finally, Nevada entities may purchase, hold, mortgage and convey personal or real property anywhere in the world.
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.
Entity flexibility is one of the great features of incorporating in Nevada. With respect to stock, Nevada corporations may issue stock for capital, services, personal property, or real estate, including leases and options. Further, in contrast to Delaware, Nevada allows unlimited stock of any par value. In addition, Nevada corporations may purchase, hold, sell or transfer shares of its own stock. Finally, Nevada entities may purchase, hold, mortgage and convey personal or real property anywhere in the world.
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.
Monday, July 5, 2010
Best Reasons to Incorporate in Nevada - Part 7
INCORPORATING IN NEVADA
Nevada does not require the public filing of shareholder lists or disclosure of other shareholder information. Also, Nevada corporations are not required to report the number of shares issued and outstanding. This is unlike Delaware, which mandates such disclosure as a basis for calculation of franchise taxes upon the corporation - non-existent in Nevada. Finally, and again unlike Delaware, Nevada does not require a Nevada corporation to disclose its principal place of business, even if outside Nevada.
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.
Nevada does not require the public filing of shareholder lists or disclosure of other shareholder information. Also, Nevada corporations are not required to report the number of shares issued and outstanding. This is unlike Delaware, which mandates such disclosure as a basis for calculation of franchise taxes upon the corporation - non-existent in Nevada. Finally, and again unlike Delaware, Nevada does not require a Nevada corporation to disclose its principal place of business, even if outside Nevada.
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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