Properly Operating an LLC

There are several key factors for the member/owner of a Nevada LLC to consider to operate it  properly; that is to say, to operate it so that the corporate shield remains strong and always protects the member/owner from personal liability for claims against the LLC.

The scope of this blog entry does not allow for a more thorough discussion of these factors, but mention of two critical factors is warranted. First the member/owner must always keep all books, records, financial affairs, and bank accounts of the LLC strictly separate from her own personal affairs. Second the member/owner must always ensure that the LLC remains sufficiently capitalized for its operations. If the member/owner does not do at least these two things, she runs a very high risk that the corporate shield could be "pierced" by a creditor of the LLC under certain circumstances. When the corporate shield is "pierced," the creditor of the LLC can go after the member/owner's personal assets (her house, her car, etc.) -- which is obviously a very bad thing for her.

There are even more benefits for the members of a Nevada limited liability company not explored here. Consult with Claflin Law to learn more.