Fundamentals Of A Nevada Limited Liability Company

By Author: Jay Butler
Total Articles: 7
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LLC stands for a Limited Liability Company. Created in Wyoming in 1977 and fully adopted by all states in the early 1990's, this hybrid sought to offer the best attributes of a C corporation and limited partnership. The owners of Limited Liability Companies are called members and companies may be formed with one owner, known as a single-member LLC, or with multiple owners, known as a multi-member LLC. Members are not liable for the debts and obligations of the LLC. If an LLC is sued, by Nevada state statute you cannot be named as a defendant and your assets are not at risk. A member is liable for claims against the company only up to the amount of their contribution to the company. Conversely, if you are sued as an individual, the assets inside the LLC are not at risk.

A single-member LLC does not file a separate tax return, it is a flow-through entity and the owner is responsible for filing information on their tax return in the form of a K-1. A multi-member LLC has the tax flexibility of filing either an 1120 (corporation) tax return or a 1065 (limited partnership) flow-through tax return. Professional Limited Liability ...
... Companies, or PLLC, are organized for the purpose of allowing professionals such as a doctor, chiropractor, lawyer, accountant, architect or engineer to provide public services. In addition to an accredited license, some states require the formation of a PLLC to operate a professional service.

The charging order is the remedy a creditor uses to place a judgment against a Limited Liability Company. A judge may award the creditor the rights of an assignee (distribution of profits, if any) but not the membership interests of an assignee (ownership). Should the court order a percentage of the distribution of profits to be relinquished to a creditor, the managing member may refuse to distribute any profits. Monies can always be loaned to members at low interest rates, if needed.
For more information about the charging order protection Limited Liability Companies provide when dealing with inside and outside lawsuits, be sure to contact the author.

Author Info:-
Jay Butler is an asset protection specialist for an International Business Company in the Republic of Seychelles. Visit their website for more details and free consultations on how to properly structure Limited Liability Companies and reasons to consider a Nevada Limited Liability Company in particular.For More Details Visit us at:-http://www.assetprotectionservices.com/