Most people don’t know that both the limited liability company and the corporation provide the corporate veil protection against liability. Each gives good protection for owners and management.
Orem, UT (PRWEB) March 02, 2013
Should someone set up an LLC or a corporation? This is an important question for those about to start up a new business. The most favored types of business entities at this time are the corporation and the limited liability company (LLC). While the LLC has more tax advantages than either a C or S type corporation, Lee Phillips has now made it a lot easier to ascertain which is better to create under what circumstances. He has written an easy do-it-yourself course entitled LLC Wizard, to help answer the entrepreneur's questions.
Mr. Phillips states, “Many small start-up businesses end up in a box where they must pick a business structure without the necessary knowledge to make the right decision.”
The LLC Wizard Course provides an intelligent comparison of both the disadvantages and advantages of the major business structures so business owners can make an informed decision that will benefit them down the road.
Mr. Phillips mentioned, “Most people don’t know that both the limited liability company and the corporation provide the corporate veil protection against liability. Each gives good protection for owners and management from liabilities suffered as a consequence of doing business.”
One major problem people fail to recognize in forming a business is that the value of that protection can be undermined if the LLC or the corporation is not set up and managed correctly.
Filing with the state and getting their forms done correctly isn’t usually a problem, as the state will usually send it back for a rewrite if there is any problem. It is the operating agreements and by-laws that should be more detailed than just the standard forms. These should reflect the needs of the company. The best thing thing about corporate by-laws and LLC operating agreements is that they can be adapted to the needs of the business.
The courts will uphold almost any written document, providing that it doesn't break the law. But, courts will only uphold by-laws and operating agreements that are followed and maintained. A judge is very likely to set aside entities that do not follow the operating agreement and leave the owners open to personal liability. The LLC Wizard has an entire chapter on maintaining corporate and LLC formalities.
Since LLCs provide additional tax advantages and an easier management structure, as well as effectively doubling asset protection, they are often the right choice for entrepreneurs who are just starting out. Lee Phillips states, “The LLC is probably the winner for most small businesses.”
Mr. Phillips serves as a counselor to the Supreme Court of the United States. He is the author of 11 books, along with his latest book Protecting Your Financial Future. He has written hundreds of articles for professional people assisting them in utilizing legal strategies to protect their property, save taxes and make additional money. He has given addresses at thousands of business seminars and enjoys helping people apply the law and finding greater success.
LegaLees was founded in 1982 by Lee R. Phillips. It is a legal self-help publishing company. It produces products designed to help people understand the law. Based on his own personal experiences, Mr. Phillips realized that people needed to be able to understand how the law works so they can direct their own legal professionals. He also saw that people who want to do their own legal work need to be shown how, not just handed a fill-in-the blank form. LegaLees has designed many products to help individuals structure their personal and business affairs. All of the products help the clients protect assets and prevent legal disasters that can strike at any time.