Asset Protection

What Are the Main Differences Between Non-Profit and For-Profit Corporations? The primary difference that separates for-profit entities and non-stock corporations in regard to acquiring tax-exempt status is their legal structures. On one hand, traditional for-profit entities can pay out profits and pay big salaries limited only by their managers’ legal and contractual duties to the […]

How Does a Series LLC Work? Take the example of electric scooter rental company Lime Scooters. A company like Lime Scooters could benefit from a Series LLC. It could group each of the 100 cities and college campuses worldwide that it services into 100 separate protected series under a Delaware Series LLC. Another approach could […]

  (c) for purposes of imposing liability on any member or manager of a limited liability company for the debts, obligations or other liabilities of the company, a court shall consider only the following factors no one (1) of which, except fraud, is sufficient to impose liability:     (i)    Fraud;     (ii)   Inadequate capitalization;     […]

Generally speaking, the sooner you incorporate, the better. The liability shield is not created until the company is incorporated. You may have what is called “promoter” liability (personal liability) for pre-incorporation obligations, even if those are ratified by the subsequently incorporated entity. With that said, end of the year incorporating is another issue. Should you […]

This business structure is referred to as “brother-sister” entities (as opposed to “parent-child” or subsidiaries). In this example, the assets of the real estate holding business and the fitness business are insulated from the liabilities of each other. If a customer claims they were injured while using the exercise equipment owned by ABC Fitness Management […]

According to the US Copyright Office, “Copyright protects original authorship fixed in tangible form.” This means that once filed, a copyright gives the claimant the exclusive right to publish, distribute and reproduce specific text, artwork, music, audio/visual material, etc. A person or company can only hold copyright to something if it is in a recorded […]