Limited Liability Companies
Our innovative and revolutionary shared ownership program starts with the formation of a Limited Liability Company which owns the leisure asset. A Limited Liability Company is a state administered corporate structure which affords its owners liability protection. The LLC is a poplular choice because it shields all of its owners from legal liabilities such as court judgments and legal settlements. Owners normally risk only the capital invested.
LLC owners are referred to as members. A member may be an individual or a separate legal entity such as a partnership or a corporation. Members invest in the LLC and receive percentage ownership interests in return. These ownership interests are used to divide up the assets of the LLC when it is sold or liquidated.
LLCs are run by thier members unless they elect to be managed by a management group which may consist of some members and/or non members. Using this structure affords the additional advantage of being able to easily subsitute new members when sharing ownership of leisure assets.
An essential component of establishing the LLC is creating an Operating Agreement which covers a variety of legal issues and spells out the rules of engagement between members. It is important to have this document in place and signed by all owners so there is no ambiguity about roles and responsibilities.
Blue Skies Fusion can set up your LLC in any state but we prefer Arizona for a variety of reasons including the fact that there is no requirement to file annual reports unlike some other states. To learn more about Arizona Limited Liability Companies we recommend that you visit the Arizona Corporation Commission website at www.AZCC.gov.
Use this link to learn more about IRS Considerations.
Use this link to learn more about Statutory Agents.