Monthly Archives: September 2013

A Limit on Creditor Control of the Nevada LLC

Nevada supports the survival of the LLCOne of the main reasons limited liability companies are formed is to limit the liability of the investors and operators of the company.  In Nevada, unless otherwise provided in the articles of organization or an agreement signed by the member or manager to be charged, no member or manager of any limited-liability company formed under the laws of the State is individually liable for the debts or liabilities of the company.  [NRS 86.371].

What about the reverse?  Can the company become liable or even controlled by a creditor of an individual member or manager of the LLC?  In other words, the individual member (or owner/investor) can incur debt outside of the operation of the LLC, debt which may have nothing to do with the LLC. Continue reading