Whenever you are looking to start up and organize a business, it is important to know about all of the legal procedures that must be followed. These procedures must be followed so that you can keep your corporation valid and in good standing. If any corporation or limited liability company goes out of business, the last thing that any owner will want to do deal with is a considerable amount of business debts. Business owners that are not careful can face considerable consequences such as being sued and otherwise liable for the business debts.
Advantages of a Limited Liability Company
When forming a limited liability company, one of the advantages is that the assets of the owner are protected from business creditors. For example, if your company is sued for any amount of money, you will not have to use personal assets such as your house to satisfy the debt payment.
Corporation Liability for Business Debts
Since corporations and limited liability companies are separate legal entities, owners of these entities are often protected from any liability of business debts. The owners of these entities are known as shareholders of corporations or members of limited liability companies.
Therefore, they are never liable for the company debts. As a result, they can avoid being sued personally and forced to give up their personal assets in case of a judgment. However, some corporations and limited liability companies can be pierced and have the owners liable for business debts.
How to Form a Corporation and Limited Liability Company
Anyone who is looking to start up a corporation or a limited liability will need to follow a few steps. First, they will need to fill out a form known as the articles of incorporation for corporations and articles of organization for a limited liability company. They will then need to designate the shareholders or members of the entity, provide the address and also organize the bylaws. The bylaws are provisions on how the organization will be operated.
Assistance with Filing Organization Documents
Since you can face considerable consequences for not following proper guidelines with corporate and limited liability filings, it is best to get assistance from a corporate attorney at our Coachella Valley corporate law firm. The firm will help with filling out and filing the proper documents as well as giving you advice on how to stay compliant with all of the regulations pertaining to corporations and limited liability companies.