Mark Kohler explains that LLCs do have a corporate veil, but only if you set them up and maintain them properly. He covers five essentials: create an operating agreement and membership certificates, put assets in the LLC's name, operate under the LLC's name, keep annual minutes, and display your LLC status publicly on business cards and your website.
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Corporate Vail llc, Limited liability company. Are they the same? Do they really exist together? The answer is yes. A lot of people think this LLC is this dumbed down, easy version, cheap and easy. I go to LegalZoom, get one sheet of paper. I'm an LLC, I'm protected. Oh no, no. The LLC has a corporate veil, but you got to protect it and you got to maintain it. Just like a corporations corporate veil, same concept. So let's talk about a little more and break down the basics so that you can maintain that llc. So it gives you the asset protection that you envision and why you set it up in the first place. Alright, let's go to the whiteboard. Now. There's so many different ways to use an LLC and I've got multiple videos out there on YouTube on LLCs for partnerships and S Corp structures and whole holding rentals. Please study up on those. You're going to love them. No one else in the country has written more on this topic than me, so. And I say that humbly because I want you to get out and study this. It's awesome. And if you need our law firm, accounting firm, we're there for you. But let's just focus in on this llc, Corporate Vail, because there's a lot of misconceptions out there. So let's just say we have this basic LLC and we might be using it in five different ways. But the important thing about an LLC is that it's not one sheet of paper in the drawer. And this is one of the big problems with America right now. There's so many online incorporation sites and you know, paralegal setup entities and document preppers and all this crap that are giving legal advice and they don't know what they're talking about. Here's the deal. An LLC has a corporate bail. But if you don't maintain that corporate veil and you did not set up the LLC in the proper way, there's no protection. So I want this protection because. But it's not going to be one sheet of paper. So let's talk about how to maintain it and I'm going to give you a few tips that are going to help out in giving this LLC the same protection as a corporation or S Corp or C Corp. And don't think you're going to be able to show up in court and go here's my receipt from LegalZoom and you're going to get protection. You're not, you're just not. And I've been there enough to know that You've got to do the basics to protect yourself with that LLC or it's not even worth the paper you wrote it on. Okay, I want to give you five tips. Five tips. You're going to love this. The first one is set it up properly, set it up correctly. I'll say that. And this means having all the pieces apart. You got to have an operating agreement, a corporate book, membership certificates, articles, you know, like, just can do it all on my own on the website at the state. I know, but it's not going to protect you. Please pay a little extra to have it done right. We got a paralegal service at our law firm that's just as affordable as LegalZoom. And you know it's done right. And, and it's not that LegalZoom does it wrong. And I don't mean to imply that in any of my videos, it's just that people go there and don't know what boxes to check. They don't know what to get when they set it up. Not that they do it wrong, it's the user is making the wrong selections. So make sure you're getting some legal advice that first time around. So we have a legal assisted setup that's very affordable or a paralegal setup and get it done right. But get all the pieces and parts. It's not one sheet of paper on your own in the middle of the night. Now next, make sure the LLC owns everything. It should be the owner. I'm going to put owner of rental property, equipment, machinery, whatever it is. The LLC should be on title and on the contracts and in the agreements. Which brings us to the next one. Operate in the name of the business. The LLC should be the one doing the business, not you. Make sure on the contracts on the website and on all the documents out there that the LLC is the one on title. And the next thing is, I want you to be thinking about company maintenance. Cm, we have a company maintenance program where we do your minutes every year and maintain it and you just protect it and use it in a way that everything signifies your. You're respecting the veil and you're doing those annual meetings as a board of advisors. We set up a board of advisors up in every llc. You should have all those pieces of parts. The last thing is, is I want you to broadcast it to the world, let everybody know that you are an llc. If it's not just having the contracts in the name of the llc, it's also putting the name out there on your business cards, on the websites on all those things. So if our contracts are proper, the title and ownership is correct, we're doing our annual minutes, we set it up properly in the first place, and then we're letting the world know that we're operating as an llc. Then this LLC will protect you the way you think it is and why you set it up. And it can be very affordable and simple, so don't cut too many corners. It's cool. The LLC is great, but just don't overdo it and the LLC will give you all the protection you need and the corporate veil that you envision. Thanks so much for watching that video and I want to be your source for tax and legal strategies. It's hard enough to live the American dream without being out on the web on Google, trying to find answers to complex questions and just clicking a mouse and hoping you got it right. My team and I want to be a huge resource to you, the law firm, accounting firm, my education resources on my site. Please continue to follow these strategies. I know they'll save you thousands. Now click here if you want to be a part of my newsletter. It's awesome. Weekly updates and deadlines and strategies and tips. Also subscribe to my YouTube channel. You'll love it. And make sure to click the bell icon so you get a little ping whenever there's a new video. And finally, check out my site marjoler.com with all sorts of videos, probably 70 plus videos, 30 plus hours of content that'll save you thousands of.
