All About Charging Orders - A Comprehensive Review Of How Llcs And Flps Protect Your Assets
Posted on April 2, 2008 - Filed Under Legal and Law | Leave a Comment
There are relatively few types of assets that are statutorily protected from claims of creditors. Membership interests in limited liability companies (“LLCs”) and partnership interests are afforded a significant level of protection through the charging order mechanism.
The Importance of History
Before the advent of the charging order, a creditor pursuing a partner in a partnership was able to obtain from the court a writ of execution directly against the partnership’s assets, which led to the seizure of such assets by the sheriff. This result was possible because the partnership itself was not treated as a juridical person, but simply as an aggregate of its partners.
Read More..>>Business Entities For Professionals In California
Posted on February 16, 2008 - Filed Under Legal and Law | Leave a Comment
California is a notoriously unfriendly state for business. This reputation extends to business entities for professionals practicing in the state.
California is a state with a very unique view towards business. Most business entities, for instance, are required to pay an $800 fee for the “privilege of doing business” in the state. This fee is in addition to any other fees charged in relation to the formation or maintenance of the business.
Read More..>>The Gap In The Corporate Shield Of Many Businesses
Posted on February 8, 2008 - Filed Under Legal and Law | Leave a Comment
If you run practically any business these days, you should form either a corporation, limited liability company or other entity to protect yourself from liability. While this is true, most businesses do not realize there is a gap in the protection.
For the purposes of this article, I am going to group the traditional corporation and more recent limited liability company creation together as a corporation. They are actually very different entities, but both have the common characteristic of providing liability protections for the owners of the business, be they members or shareholders.
Read More..>>Introduction To Close Corporations
Posted on January 31, 2008 - Filed Under Legal and Law | Leave a Comment
Mention the corporate entity and most people start thinking about S or C designations. In some states, close corporations are another variable that are available.
First things first – a close corporation does not refer to a closing as with a door. It refers to a limited number of shareholders. It is a unique entity that is not available in all states, but is worth a look where it is.
The close corporation was originally designed to be a more user-friendly business entity than traditional corporations. It was the LLC before limited liability companies existed. Once LLCs received favorable tax designations in the late 1980s, the close corporation became the forgotten stepsister of business entities. That being said, it offers some unique advantages.
Read More..>>The Advantage Of An S Corp Over An Llc
Posted on December 28, 2007 - Filed Under Automotive, Legal and Law | Leave a Comment
It goes without saying that the LLC is the media darling when it comes to choosing an entity for small businesses. In some cases, however, an LLC is at a disadvantage compared to an S Corporation.
Originating in the late 1970s in Wyoming, Limited Liability Companies have rise to loft heights. They are arguably the single most popular and most used entity for small business start ups. Why is this? Well, the LLC offers the tax advantages of a partnership along with the liability protection of a corporation. At the same time, the LLC does not require owners, known as members, to comply with the formalities of a corporation. In truth, said formalities are pretty simple, but there you are.
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