If you’ve ever done any research or general looking into how to start a business, especially in Nevada, you may have noticed that a lot of businesses have made the decision to operate as limited liability companies (LLC’s). There are a number of good reasons to form Nevada LLC if you are thinking of starting a company or business; even if you don’t live in Nevada you can still form a company in the LLC fashion. Many business owners find that they can take advantage of a number of benefits that come with the formation of LLC’s.
The main advantage that people look at when they form Nevada LLC is the fact that their personal assets are protected. That’s what limited liability means, in essence. The business owners and operators as well as their partners or backers receive protection from personal asset loss in case the business goes belly up. This protection also extends specifically to the results of the LLC being involved in a liability lawsuit. If the company is unable to pay a judgment or any other debt that was legally incurred, then the owners won’t be held liable for payment of any of that money that is owed. This is true of other business debts, as well.
When you form Nevada LLC, you are forming a company that is its own separate entity and as such it is responsible for its own debts and financial responsibilities, within reason. The limited liability ceases if the owner or business operator act in an irresponsible or illegal manner which causes the company to fail or become involved in a lawsuit where liability will be at issue. If this happens, then the owner/operator can and will be held liable for the debts of the business. Another thing to consider is that because the LLC is its own entity, unless otherwise specified in the operating agreement, it will continue on even after your death or the death of other partners or backers. This can be a plus for your family, in the event if an untimely demise, they may be able to continue operating the business in your stead