May 23, 2014

Two other posts (here and here) address techniques useful in protecting personal assets from the creditors of a corporate entity (I.e., limited liability company or corporation).  This post addresses specifically how to sign documents to aid in that effort to avoid “piercing the corporate veil.” The key is to sign documents not in your personal name, but in the name of … Continue reading Pillars of Strength: Formatting a corporate signature to protect the “corporate veil.” →

When clients approach us for business formation, one of their concerns is protecting their personal assets from a business misfortune, either simple financial failure or a catastrophic situation creating an unexpected liability. We tell clients, first, that no undertaking is made without some degree of risk.  In shorthand, we say “if you want to avoid all potential … Continue reading Pillars of Strength: Three tips for protecting your personal assets when forming and operating a company →

Our clients form and do business in the name of corporations and limited liability companies for a variety of reasons, but one primary motivation is to achieve the benefits of limited liability protection that the entity offers. Optimally, limited liability protection means that the exposure of the investor/owner in a corporate entity is limited to his capital contributions … Continue reading Pillars of Strength: Effectively using your corporate form for limited liability protection →

May 19, 2014

There is a common misconception that a limited liability company is a type of taxable entity for federal taxation purposes.  In other words, a client believes that the company will be taxed as a “limited liability company.”  Instead, a limited liability company has the flexibility in choosing how it is taxed for federal taxation purposes.  … Continue reading Limited liability company taxation →