Placeholder Image

Subtitles section Play video

  • One of the many advantages of owning a limited liability company, or a LLC, is it limits

  • the exposure to the members of the LLC. If one of the members gets a judgement against

  • him because they're having financial trouble and not able to pay their bills, then the

  • creditor that takes the judgement against him, can only establish a charging lien against

  • the membership interest of that member. What that means is if the entity makes any distributions

  • whatsoever, then all that creditor gets is the distributions made by the LLC. What usually

  • happens is that the members decide not to make any distributions so the creditor gets

  • nothing. The benefit to the other members is it cannot affect the corporation and it

  • cannot affect the other members.

One of the many advantages of owning a limited liability company, or a LLC, is it limits

Subtitles and vocabulary

Click the word to look it up Click the word to find further inforamtion about it