Much of the ability of a government agency to easily seize or attach assets for issues like unpaid child support or unpaid taxes rests with the type of business structure created.
In most cases (and in the case of Standard Legal’s documents), the Operating Agreement for the Limited Liability Company will normally spell out each member\’s rights and responsibilities with regards to profits, losses, distribution and financial issues.
Many states have a process by which a Limited Liability Company can be revived if it has been administratively dissolved or not maintained.
Each state\’s procedures are different, and each state has a different time frame in which the reinstatement process must be completed.
The members of an LLC are generally listed in the Company\’s operating agreement, which is an internal company record that is not filed with any state agency.
In some states, the names of members are not required to be listed on the Articles of Organization that are filed with the state agency to form the LLC.
As such, in your particular state, the names of the members may not be required to be made public.
But not being ‘required’ to disclose the ownership information is different than ‘choosing not to’ disclose that information.
Trusts are structured with liability in mind, to keep the beneficiaries removed from the assets involved. Most Trusts are set up with personal property assets like land, or homes or vehicles, and their liabilities are somewhat limited. But some trusts hold assets like fully operating businesses, LLCs and corporations. So if a business held by a Trust ‘goes bad’, can the beneficiaries of that Trust become personally liable for any portion of the debt generated by any operational business assets within a Trust — especially if that debt exceeds the value of the assets in the trust?
Remember, ‘Ask Standard Legal’ was created to respond only to ‘questions of fact’ for the legal topics listed at the left. So it follows that we cannot respond with suggestions on how a person might structure something or how to proceed; that’s the very definition of legal advice. You can certainly create an LLC at … Read more
Merely adding another member to an existing LLC generally does not require a document to be filed with the Secretary of State.
Setting up a new Limited Liability Company (typically called an LLC) offers the business owner(s) protection from potential creditors and other claims (i.e. it insulates your personal assets). But these protections will only exist if the business operations are conducted under the Limited Liability Company name in all respects.
As such, it is very important that Company money be kept separate from any funds that you maintain in your personal bank accounts (or accounts of other entities), and that you do not place your personal funds into the new business bank account, or otherwise commingle funds.
The use of ‘Inc.’ or ‘Incorporated’ within the business name for a limited liability company would be inappropriate in almost all states, and in most cases would prevent the filing of the LLC documents from being accepted by the secretary of state.
Personal income tax issues will not be imputed to the LLC itself in most instances. But any collection activity against a member of an LLC for tax matters could affect that member\’s ownership rights.