Pros Of Limited Liability : Liability

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Pros of Limited Liability • Limited liability: This means that the owners and shareholders personal property are protected when the LLC is bankrupt or sued. Also, in some cases of fraud and illegal acts the courts will pierce the corporate veil that protects the member or members so that they become personally liable for such acts. However, it was said that since there are little to no precedent in this area of such law it is difficult to determine under which circumstance the veil would be removed. • Unlimited amount of members- You must have more than one owner otherwise you can be taxed as a sole proprietor. Members do not necessarily need to be citizens of the country and can an owner that is another owner of another LLC. Also, LLC are not required to have a board of directors or shareholder meetings, less paperwork and record keeping in such business structure. • Perpetual existence/ease of transfer: This means that when one owner dies or sell his/her shares the LLC will continue since, there would be more than one owner as stated before. For example, in the United States, the ...
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