Why would a very small company that has been in business for over 10 years suddenly form an LLC? Would there be a benefit to them if the business was totally destroyed by fire a little over a month after filing for LLC?
2007-02-12 04:13:27 · 2 answers · asked by ronrlogan 5 in Business & Finance ➔ Corporations
There were a couple of things that bothered me about the fire, one being that according to fire personnel fighting the fire said it started in the middle of the building, while the business owner said the fire was in the corner of a smaller building where it connected to the larger building containing cardboard boxes and plastic bottles for the water bottling operation. Another is that the fire started early Saturday morning, first noticed by the owner that lives at the property at 5:30 a.m. while the fire departments (11 of them) didn't start arriving until after 6 a.m.
2007-02-12 08:54:51 · update #1
An LLC is a way for a company to create a business structure that is separate from themselves as owners. In an LLC the owner is generally not liable for the financial debts of the company, but there are a few exceptions to that (hence the term limited liability). The only way I could see the company benefiting from the fire is if the business shut down completely and the owner opted out of his/her debt. A good site to read more about this type of structure is: http://www.mycorporation.com/llcadv.htm
2007-02-12 06:39:16 · answer #1 · answered by xyzspam 2 · 0⤊ 0⤋
hmmm....makes you wonder what they are up too. To first file as LLC and then a fire?????? But the 1st answer is correct LLC and incorporated don't hold the company PERSONALLY responsible for debt.
2007-02-12 16:34:23 · answer #2 · answered by be happier own a pitbull 6 · 0⤊ 0⤋