favaks 0 #1 February 4, 2004 I'm starting an LLC with a friend. When we filed the application, we declared both as vested managers of the company. We will have no other members or managers. Is this a mistake? Should we have declared both as members? What is the difference between a members-managed and managers-managed LLC, when it comes to tax and liability? I would like to take this to PM, since it's not really skydiving related. Blue Skies, favaks Quote Share this post Link to post Share on other sites
rhino 0 #2 February 4, 2004 No an LLC is not a mistake. Do it in the state of Nevada.. Rhino Quote Share this post Link to post Share on other sites
Glipazide 0 #3 February 4, 2004 Since this came up, what is a LLC, what does it stand for? guess Im dumb when it comes to that kinda stuff.http://sexygirlabs.com/url] Quote Share this post Link to post Share on other sites
indyz 1 #4 February 4, 2004 QuoteSince this came up, what is a LLC, what does it stand for? Limited liability company. "Unlike a regular and limited partnership, in an LLC, all partners enjoy limited liability with regard to business's liabilities, and, in that regard, they are similar to shareholders in a corporation." Quote Share this post Link to post Share on other sites
lawrocket 3 #5 February 4, 2004 An LLC is a "Limited Liability Company." Its main purpose is to limit liability of its members. In other words, if the company is sued, the personal assets of the "members" are protected. The "members" are pretty much the same as "shareholders" in a corporation. That's a basic overview on what an LLC is. Contact an attorney who sets these up to tell you what the laws of your state are regarding LLC's. And, contact an accountant to determine the tax treatment of your corporation. In other words, talk to an attorney in Washington. My wife is hotter than your wife. Quote Share this post Link to post Share on other sites
DTOXX 0 #6 February 4, 2004 Listing both as managers will be fine. You can subtitle in your "company documentation" later. You must make sure that you only take a withdraw from company funds with a valid (appearing to be valid) distribution noted in your accounting system though. While an LLC (Or LLP) does offer limited protection there is a reason it has called limited. If a lawyer can prove that your company is in paper only and that the bank account(s) are nothing more than an excess personal account then they can make a move on your personal finances. BTW, my wife is an attorney and works in the bankruptcy division. ------- D.T. Holder SIMstudy Quote Share this post Link to post Share on other sites
