How Do You Create An LLC For Investments?
An LLC, or limited liability corporation, for investments is an important step for all investors. LLCs provide four important consolidations: clarity of ownership, liability of risk is moved from the individual to the corporation, overriding of various state rules governing investments in favor of a national law, and a means to transfer ownership within the company through the buying and selling of shares. LLCs may be set up with legal assistance or in a simplified form using Internet resources. Step 1 Define who will own shares in the LLC and for what price. Know that each share represents a proportionate interest in the gains and losses of the company. Codify the rules and regulations in the operating agreement of the LLC. Use the operating agreement to prevent financial and management misunderstandings, and to make certain that your business is governed by agreed-upon rules and not the default rules of your state of incorporation. Step 2 Use the limited liability structure to protec
