• Patrick D. Newton is a North Carolina Board Certified Specialist in Estate Planning and Probate Law.

Reasons to convert your corporation to an LLC

Creditor Protection for the company. Both corporations and LLCs provide creditor protection for the owner. That is, if the company gets sued, the shareholders should be protected from that lawsuit through the limited liability concept for corporations and LLCs. However, if an owner of corporate stock is sued personally (a lawsuit unrelated to the business), the corporation is at risk. If a judgment is obtained, a judgment creditor can acquire ownership of the corporate stock.…

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Does my LLC need formal Annual Meetings?

The law does generally not require meetings of Limited Liability Companies, Trusts, and Limited Partnerships. However, a Limited Partnership or Limited Liability Company (LLC) is a business, and most businesses do have regularly scheduled meetings of the management team and the owners. To help make sure my clients formalize this, the LLC operating agreements I draft do require an annual meeting. There are advantages to having regular meetings. Among the advantages are: An opportunity to…

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