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This section provides some tips on running an LLC from a legal perspective, with the goal of keeping the liability protection provided by your LLC in tact.

One benefit of the limited liability company is that it need not comply with some of the required formalities of a corporation. An LLC isn’t as complicated as a corporation, but there are still formalities you should think about following. These formalities will help protect you should you ever find yourself in the middle of a lawsuit that challenges the liability protections of your LLC.

At this point, you should still have some rules for operation of the company such as an operating agreement.

One important point to remember is to keep the company separate from your personal affairs. Do not regularly make loans to yourself from company funds and do not commingle funds.


The keeping of minutes is not specifically required of an LLC, but doing so may provide you with some additional protection from liability.

Signing for Your LLC

Another important point to remember is that when you sign docu­ments for the company, you must always use the full name of the company with the correct suffix (L.L.C., L.C., etc.) and always sign your name as a member of the company with your title. For example, you would sign:

Johnson & Smith, L.L.C., by John Johnson, member

If you do not, you may lose your protection from liability. There have been cases in which a person forgot to put his or her title after his or her name and was held personally liable for a company debt.

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