A Limited Liability Company can execute a Power of Attorney document for nearly any business transaction, naming an Attorney-in-Fact to perform some or all functions or duties on behalf of the LLC.
Limited Liability Company LLC Questions
Answers to Frequently Asked Limited Liability Company / LLC Questions
Does a Sole Member LLC Still Elect Officers and Directors, Even Though There is Only One Member?
Generally, a sole member LLC is managed by its Member.
In most cases, LLC’s do not elect officers or directors, although an LLC could, if it so wished, through its Operating Agreement.
This arrangement is not, however, the “norm” for sole member LLCs.
Does Any Legal Reason Exist Against Naming My Corporation With My Own Name?
A company name can be any set of words — including a person’s name — so long as that identity is not already registered by another in a particular state.
If a Partner Owns 25% Share of an LLC and Provides Money for Company Expenses, Is She Reimbursed the Full Amount?
It appears you are confusing an investment in the Limited Liability Company with one member providing money for the expenses of day-to-day operations for the business.
In Lawsuit Against a Sole Member LLC, is the Liability of the LLC Only Equal to the Amount of the Initial Financial Contribution?
No, the Limited Liability Company is liable for all of its own debts, regardless of the amount of capital contribution paid by its Members, even a sole Member.
You may be confusing your thought process with the fact that a Member is not personally liable (in most cases) for the debts of the L.L.C.
Can an LLC Assign Power of Attorney to a Non-Director or Non-Member to Handle Its Business Affairs?
A Limited Liability Company does have the legal authority to appoint an individual as “Attorney in Fact” using a Power of Attorney document.
But there are two organizational specifics that must be reviewed prior to making such a determination for the LLC.
If an LLC’s Sole Member Dies, Can the Agent Continue to Operate the LLC?
A review of the LLC Operating Agreement would be required. Absent language specifically addressing the issue in the Operating Agreement, the death of a sole member usually results in the dissolution of the LLC.
What Happens Upon the Death of the Manager of an Limited Liability Company?
The Limited Liability Company’s Members must elect a new Manager. If the person who was Manager was also the registered agent, a new agent must be selected and the Secretary of State in which the LLC is formed must be informed of such new agent, utilizing the appropriate change of agent form.
If a Limited Liability Company is Sold, How Are the Debts of the Business Handled?
The issue of debt treatment in a business purchase of a Limited Liability Company is usually highly-complicated and fact-specific. The answer depends upon how the debt was created, how the company was purchased, and other mitigating factors.
What Must I Change to Add New Owners to an LLC?
The Operating Agreement of the LLC should be modified or amended to show that additional members are owners of the LLC.