| The LLC is the little business entity that could. | | | | statutory laws passed by the government that require |
| Unfortunately, many services market it as the cure-all | | | | you to do so. So, is that the end of the discussion? Not |
| to every problem a small business has. LLCs are solid | | | | by a long shot. |
| business entities, but they are not perfect. In this article, | | | | You are absolutely out of your mind if you do not |
| we take a look at one of the marketing claims you | | | | keep corporate minutes for your LLC. Why? Well, let's |
| often see regarding an LLC and whether it has any | | | | imagine a scenario where the LLC gets sued by some |
| merit. | | | | other party. As is often the case in litigation, things can |
| As with any product or service being sold, you should | | | | get nasty quickly. In your case, they suing party starts |
| really take marketing claims with a serious grain of salt. | | | | asserting that the LLC is really just a shell entity and |
| Not every car can be the best in the world and not | | | | should be set aside so the real party [that would be |
| every marketing claim regarding business entities is | | | | you] can be held responsible for your untoward |
| true either. This is particularly true when it comes to the | | | | conduct. |
| claim that corporate entities are "bad" because you | | | | At this point, the court is going to have to make an |
| have to keep corporate minutes. Oh, the horror! | | | | evaluation about whether the LLC is valid or not. What |
| Keeping corporate minutes is a simple process and not | | | | is one of the key things it is going to look at? You |
| a factor that should be considered when deciding | | | | guessed it - the documents in the corporate book. |
| whether a corporation is the best choice for your | | | | Specifically, do they show that the LLC was |
| business. | | | | functioning as a real business or as your play thing? |
| The flip side of this marketing theme is that limited | | | | Well, now you have a problem. Why? You don't have |
| liability companies are great because you don't have to | | | | any minutes or corporate documents! How do you |
| keep corporate minutes. Is this true? Yes and no. | | | | think the court is going to view the LLC in light of that? |
| Every state deals with the issue in different ways, but | | | | Not well! |
| it can be said that some states do not have any | | | | |