Liability Protection – Forming an LLC is Only the Beginning to Personal Risk

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Most people form a limited liability company (LLC) for their business in order to protect the owner members from personal liability. The LLC does offer such protection but only if legal requirements and formalities are satisfied and you actually run the business like a separate LLC. The trouble with this is that is may only costs a few hundred dollars or less to file the required papers to form the LLC, but figuring out what comes next can be expensive if you have to get advice from professionals on how to continue the protections of the LLC form of ownership.

For example, every state has laws governing LLC ownership. The laws say what can and can’t be done about a lot of things. They cover required record keeping. Lists of members and their ownership percentage, tax returns, operating agreement, financial etc. are some of the records required to be maintained by the LLC at its office by many states. Each state’s requirements are different so you’ll have to know what your’s requires.

The next thing to be concerned about is what your operation agreement actually requires. Some require various degrees of documentation. Some require annual or more than annual meetings of members and minutes or other documents be made and retained.

It is always a good idea to have resolutions of important decisions for the LLC. Keeping business records separate and apart from any personal records is critical to show that the business was actually operating as an LLC, separate and apart from any individual member of the LLC. Likewise, setting up a separate email address for the LLC, shows it is a separate business, not intermingled with personal or other email accounts.

Office of the Board was built to handle all of this for LLC owners. Setting up the LLC is a great start to individual protection from personal liability, but its only the start. Office of the Board helps you take it from there. You instantaneously have a separate email account for your LLC. Your Office of the Board intelligently sets up your document management system for your particular type of LLC. If your a Delaware LLC, its sets up with the record keeping requirements for Delaware. If your a New York LLC its sets up with the New York requirements. Your LLC’s Office of the Board also systematically sets up with templates and other resources for your particular type of LLC depending on your state and other factors.

When someone tries to undo the personal protection that you created the LLC to protect against you’ll be ready with your LLC’s Office of the Board there to protect you and the other LLC members.

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