Last piece in the Incorporating Puzzle


What type of entity is best for me? Stock held Corporation or LLC?

In Nevada both types of entities have the protection for there Stockholders or Members. Meaning, if a lawsuit comes at the corporation, the lawsuit attacks the corporate assets not personal assets of the stockholders or members
(link to statue NRS 78.747)

The main difference is Charging Order Protection. If a lawsuit comes at a Stockholder personally the stock held by that stockholder is considered personal property and can be awarded in a judgment.

In an LLC your structure is a percentage of Membership, you must have written unanimous approval from all Members to sell off any assets of the LLC. So if a judgment comes at one of the members the court cannot force other members to sell corporate assets in order to meet that judgment. The court can only put a lien on any disbursement that the member might be entitled to in the future.

What you really have to ask yourself is will I have owners in my corporation coming and going? This might be a reason to file a Stock held Corporation. Or do I want the extra protection of the LLC, will I have problems with a member not wanting to sign if the membership structure needs to change? Your decision, you need to decide.

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