By George Fox, Fox & Mattson, P.C.
How about 31 reasons to maximize the liability shield of your Limited Liability Company? They apply to every business, professional practice, and investment entity which holds stocks, real estate and anything else in the name of an LLC.
First, though, here’s why you want to consider these 31 reasons.
There’s no protective goo which coats your assets when you (or you and your business associates) pay the $100 filing fee to the Secretary of State to form an LLC on your own. There’s no automatic, unlimited, lifetime protection.
And there’s no sealant which seeps into all the cracks and crevices surrounding company assets when you use an online service’s Do-It-Yourself Limited Liability Company Special for $89-or-whatever. That’s true even if their package includes a fill-in-the-blanks form “Operating Agreement.”
Sure, merely forming an LLC gives you some protection. But regardless of what you’ve read about LLCs online, regardless of what you found by Googling, that’s not all the protection you can get.
You get much more protection – and control – with a real, written Operating Agreement tailored to what you’re doing.
That’s primarily due to the 31 places in the Georgia LLC Code where this phrase appears:
“Unless otherwise provided in a written operating agreement. . . [.]” READ MORE
About the Contributor: George Fox is a respected Atlanta attorney with more than 30 years of experience in the practice of law. After graduating from Emory University Law School and gaining experience with a local firm, he founded his own firm in 1983. George serves as Adjunct Professor in the Center for Transactional Law and Practice at the Emory Law School. He frequently presents to bankers, financial advisors, veterans, industry groups and others. He has given seminars for the Georgia Tech School of Management and at State Bar of Georgia Continuing Legal Education classes. George also works with many charitable entities regarding their IRS qualification and structure.