An LLC is something that all of us have seen on various companies out there. Some of us even have family members who have companies with this title and you have always wondered it stood for. Little do most people know, there is nothing more to an LLC than people trying to protect their assets if things go wrong. It stands for a limited liability company. By the name, you can see that it means partners are trying to limit their liability that is tied to a company.
- Being able to protect your own assets in this type of agreement is paramount.
- Not every single corporation, or business entity, actually turns out to be successful.
- It is difficult to tell any one person to not protect their own interests in this agreement.
“Fundamentally, there are two organizational documents essential to every LLC formation, (1) a public document filed with the applicable Secretary of State and (2) a private document (‘Operating Agreement’ or ‘Limited Liability Company Agreement’).”