Financing the Company
The laws of most states allow the members of a limited liability company to make their investment in the form of cash, notes, property, or services. Rather than shares in a corporation, an investment in a limited liability company is often represented by certificates of membership interest. Profits and losses are allocated among the owners as provided in the company's articles of organization or operating agreement. These documents will be carefully prepared by your lawyer to provide the capital contributions and profit sharing that you want for your company. The company may also borrow money from lenders and purchase from suppliers on credit terms. Generally, the owners and managers of the company are not personally liable for the company's debts. However, there are situations where owners and managers can become responsible for company obligations. For example, an owner who guarantees a loan may be forced to pay the lender if the company fails to repay the loan. Your lawyer can advise you how to avoid personal liability for company debts.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
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