LLC New Year’s Resolution 2014: Maintaining LLC Identity, A Practice Checklist

Jan 06, 2014

New Year’s Resolution 2014

Maintaining LLC Identity

Practice Checklist

By: Craig Watrous

Maintaining limited liability company formalities is not difficult, but it does require periodic review and attention.  Even the most careful LLC managers and members can use an occasional word or two of advice on how to guard and maintain LLC identity.   Here is a general summary of important points for your business to be sure to address in 2014:

  1. Keep up Annual Report filings with the Secretary of State where your LLC is incorporated.  In Colorado, this can all be done online.  Here is the link to the Colorado Secretary of State:  http://www.sos.state.co.us/pubs/business/businessHome.html?menuheaders=2
  2. Operate only under the registered LLC name or the registered trade name.  If a trade name has not been registered, then it may not be valid.
  3. Make sure that third parties dealing with the business know that it is in fact an LLC. Make sure that all company agreements are entered into by the company and not personally guaranteed by the party signing those agreements.
  4. If your company uses a trade name, maintain trade name filings with the relevant Secretary of State.
  5. Do not give personal guaranties or otherwise risk personal liability. Do not sign contracts personally, sign only as a manager/member on behalf of the LLC or you may be inadvertently signing personally and risk personal liability. 
  6. Keep all financial transactions involving the LLC separate from personal financial matters. Do not co-mingle your personal assets with company assets.
  7. Carry appropriate insurance for company vehicles, property and company assets. Carry appropriate liability insurance for the company’s acts.
  8. Document any indebtedness owed to members.  This should be documented in the LLC minutes and filed in the LLC minute book.
  9. Document significant company capital transactions. This should be documented in LLC minutes and filed in the LLC minute book.
  10. Hold at least one annual meeting. Maintain at least annual LLC minutes confirming the members, electing manager(s) and documenting major LLC transactions. 
  11. If a member leases property to the company, make sure that the lease is in writing, commercially reasonable, and that the terms of the lease are actually followed. 

This is not designed to be a comprehensive list, but rather a quick reminder of some of the key issues and documentation you should be preparing and maintaining for the independent identity and legal status of your limited liability company.  Failing to establish and keep formalities in place can remove limited liability protection for the members, making them potentially personally liable for company disputes.   If you have any questions or need any assistance with any of the above, please give us a call.

Mallon & Lonnquist, LLC, is a business, real estate, finance, and litigation law firm. Craig T. Watrous is a Colorado business attorney with Mallon & Lonnquist, based in Denver, Colorado. Craig regularly represents limited liability companies. Craig can be reached at cwatrous@mallon-lonnquist.com.

View Craig Watrous's profile on LinkedIn



Category: M&L Legal Posts

Category List

Tag List

Construction Contracts (5)
ABA (1)
Corporate Law (8)
LLC Law (2)
Skiing Gear (1)
Trade Secrets (6)
Breach of Contract (3)
Colorado business disputes (1)
Leasing Standard (1)
Property Surveys (1)
Construction (6)
Litigation (19)
indemnifications (3)
Mergers & Acquisitions (5)
Denver Business Journal (2)
Colorado attorney mentor (2)
Business Attorney (2)
Spanish Business Law (9)
Ethics (1)
Denver Business Law (1)
Real Estate Law Firm (3)
cyber security (3)
Wrongful Death Settlement (1)
Landowners (1)
Denver Colorado Business Attorney (9)
Colorado Real Estate (11)
Data Breach (2)
Credit Card Data (1)
Non-Disclosure (1)
Finance Law (2)
Resolutions (1)
Construction Bond Claims (2)
Colorado Business (56)
Colorado LLC (1)
Real Estate (6)
Mechanic's Liens (1)
American Bar Association (2)
Our Courts Colorado (1)
Colorado Courts (2)
Incentive Plans (1)
Colorado Enforcement of Non-Compete (2)
Certifiably Green Denver (1)
Colorado at-will employment (1)
Non-Solicitiation (1)
courts (1)
Commercial Property (2)
CO Business Non-Solicitation Restrictions (1)
Denver Broncos (1)
Cherry Creek Chamber of Commerce (1)
Colorado Foundation for Water Education (1)
Lease Negotiations (1)
attorney-client privilege (2)
Contracts (3)
Alternative Dispute Resolution (6)
Arbitration (5)
Business Law (1)
Master Services Agreement (2)
Denver Real Estate (1)
Snowboard Gear (1)
Enforcing Non-Solicitation Agreement (1)
Colorado Hispanic Bar Association (1)
Business Services (5)
Co-Ownership Agreement (1)
Spanish Legal Services (10)
Labor (3)
Denver Sustainable Law Firm (1)
Mediation (1)
Leases (7)
News and Updates (15)
CO Ski and Snowboard Gear Recall (1)
Non-Compete (2)
Business (5)
Resolving Business Disputes (1)
Colorado Wrongful Death (1)
Panelist (1)
Non-Solicitation (1)
Business Contracts (8)
Non-Competition Agreements (12)
Colorado Employment (20)
St. Anthony, Minnesota (1)
ABA Article (1)
Legal Services (1)
subcontractor negotiations (2)
cause for termination (1)
Stock Options (1)
Cell Tower Leases (1)
Employment (4)
Employment Law (1)
County Court (1)
Overtime Wages (2)
Helmet Recall (1)
Colorado Construction (1)
Taxes (1)
Business Disputes (8)
Legal Updates (5)
Business Litigation (4)
Reed Morris (1)
Commercial Real Estate (2)
Research (1)
Landlords (1)
Community (33)
Colorado Retail Leasing (1)
ADR (2)
Non-Compete, Colorado non-compete restrictions, enforcing non-compete, protecting Colorado business (1)
Data Breach Settlement (1)
Denver arbitration (1)
Colorado Spanish Legal Services (1)
Colorado Judicial Institute (1)
Spanish Speaking Lawyers Committee (3)
Phantom Stock (1)
Colorado Lis Pendens (1)
CO Attorney Mentoring Program (1)