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Before You File Your Corporation or Business article
Before You File Your Corporation or Limited Liability Company (LLC): 5 Things to Consider! (Part One)
Before You File Your Corporation or Limited Liability Company (LLC): 5 Things to Consider! By: Darius M.
By Darius Barazandeh
Category: Business
Submit your Recipes Here!
Before You File Your Corporation or Limited Liability Company (LLC): 5 Things to Consider! By: Darius M. Barazandeh, Attorney at Law / M.B.A. POINT # 1: Many investors believe that they can create a limited liability company (LLC) or file a corporate charter with the state and always have liability protection. This is SIMPLY NOT TRUE. The truth is that each of these business entities (the LLC, the corporation and even the limited partnership) require certain key steps after the structure is created. I always like to compare business entities to a fancy Italian sports car or a new baby…they WILL DEMAND PROPER CARE AND FEEDING! They are fun on the first day, but you had better know how to maintain them. You can’t neglect the baby or take the fancy Italian sports car for a spin without any oil in the engine. If you do then a disaster is coming! Many new business owners believe that because they hired an attorney or service to create their new business entity, the work is done. The truth is that what you do after the entity is created is most important. There are countless nuisances, details, traps which must be understood in order to MAINTAIN LIABILITY PROTECTION. POINT # 2: Let me add another point that most people miss: if you plan on going into business with another investor or what you might call a partner, consider this: What happens if there is a disagreement? Do you have to sue, do you use mediation, do you have procedures in place to require efforts to settle things out of court? What happens if one of the parties in the business wants to sell their ownership interest? Who will buy it? What will they sell
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