11–20 of 200 posts
It is best to have at least two persons in the LLC. If there is only one owner, then you have less protection as the "veil" can be "pierced". https://www.nolo.com/legal-encyclopedia/piercing-the-limited...
Piercing the veil can occur for many different reasons, including some as simple as improperly kept notes of annual meetings. Consult with a lawyer to be sure every formality is followed.
It is best to have at least two persons in the LLC. If there is only one owner, then you have less protection as the "veil" can be "pierced". https://www.nolo.com/legal-encyclopedia/piercing-the-limited...
From the article: > if you form your small business as an SMLLC, and observe a few basic rules (such as keeping business finances separate from personal finances), you should be personally protected from most kinds of business liability Single-member LLCs which are run properly still get liability protection.
Courts in a variety of states have “pierced the veil” of a single-member LLC from the outside and have held that it is not a separate entity and thus may not be used to protect the assets of the LLC from the creditors of the member.
You get liability protection, yes, but not as much as you would if you had one more member. The veil can be pierced for various reasons, so to reduce risk you want to minimize those reasons as much as possible.
Ask me how I know :)
Earlier quoted context omitted.
Piercing the veil can occur for many different reasons, including some as simple as improperly kept notes of annual meetings. Consult with a lawyer to be sure every formality is followed.
This is incorrect. In California at least, LLCs do not need to hold annual meetings.
You also need to file a California Form 568 tax return with the Franchise Tax Board and pay the $800 annual tax whether or not you have any income, or you get a big fine that increases every month you don't file... Ask me how I know :)
Really? In the 2 states I've lived in, there is no annual fee for LLC's. I'm curious what the reasoning behind having a fee that large is.
Cheaper to register in Delaware. Only $300 per year in LLC tax vs $800.
Cheaper to register in Delaware. Only $300 per year in LLC tax vs $800.
You also need to file a California Form 568 tax return with the Franchise Tax Board and pay the $800 annual tax whether or not you have any income, or you get a big fine that increases every month you don't file... Ask me how I know :)
As a lawyer, but not your lawyer, please consider a Delaware LLC. California is not where you want to litigate and it’s yearly fees are absurd. Delaware is the gold standard.