Jul 292015

LLC General Requirements and Recommendations

(This is Part 5 of our LLC Series) The following are some general requirements and recommendations you should consider when operating an LLC: SIGNING ON BEHALF OF THE LLC Whenever the LLC managers or officers are signing agreements, documents, or correspondence on behalf of the LLC, care should be taken to include the LLC’s name in the […]

Jun 162015

Separation of LLC and Personal Assets

(This is Part 4 of our LLC Series) It is important for any company to respect the differences between the company’s bank accounts, property, equipment, and other assets and the personal assets owned by the company’s owners. An LLC, like a corporation or other legal “person,” is a separate legal entity with assets that are owned […]

May 262015

LLC Member Votes and Manager Actions

(This is Part 3 of our LLC Series) MEMBER VOTES Certain fundamental changes in the life of an LLC, such as a merger or liquidation of the LLC, require a vote by the members. These fundamental changes include the following: Amendment of the articles of organization (requires at least a majority vote of the members; […]

May 112015

The Roles of the Major Players in an LLC

(This is Part 2 of our LLC Series) The following is a brief description of the roles of the major players in an LLC — the members and the managers. Although the following is written as if members and managers are separate persons, the same individuals could serve as members and managers. MEMBERS The members own […]

Apr 122015

Introduction to Limited Liability Companies

The responses to my series on mechanics liens have been very positive. A large number of you have expressed that you find the information helpful and that it gives you a deeper and clearer understanding of the complex world of mechanics liens. Many of you have also asked that I do a similar series for other subjects, such as corporations and […]

Jun 62014

Alter Ego Liability – A Trap for the Unwary

If you formed a corporation or limited liability company, you probably did so to shield yourself and others from liability. Generally, shareholders, directors and officers are not personally liable for the debts of a corporation or LLC. However, under certain circumstances, California courts can “pierce the corporate veil” and allow creditors to go after individual […]