Have you ever wondered what the different ways you could do business are outside of just doing it yourself?
You need to wonder no longer, below is an entity chart which lists each form of business and a brief description of what it is.
In my previous post, I talked about the different ways an Oklahoma limited liability company can end. Once it has ended, there are several things you need to do to “wind up” up the company.
1. Pay Creditors. Payment, or adequate provision for payment, shall be made to creditors, including to the extent permitted by law, members who are creditors, in satisfaction of liabilities of the limited liability company;
2. Distribution to Members. After creditors are paid, the company can distribute what is left to the members. The first distribution in this category is to members or former members in satisfaction of liabilities for distributions under the Oklahoma Limited Liability Company Act; and then to members and former members first for the return of their contributions and second respecting their membership interests, in proportions in which the members share in distributions.
3. File Articles of Dissolution. Once you have completed the preliminary steps required for winding up the company, you file a document called “Articles of Dissolution” with the Oklahoma Secretary of State.
Have you ever wondered how an Oklahoma limited liability company dies?
Do you think your company might have already experienced one of those circumstances that would mean death for it?
To dissolve or have a dissolution is simply the legal term for the end of the limited liability company.
The dissolution of an Oklahoma limited liability company happens naturally under Oklahoma law when any of these things happens:
1. A natural death. The LLC reaches the age when its Articles of Organization says that it ends (e.g, the Articles provide for a 50-year life and the LLC reaches 50);
2. A prearranged death. An event happens that the LLC operating agreement says means that the company should dissolve;
3. Everyone agrees it should die. All LLC members agree in writing the company should be dissolved.
4. Death from the Court. An Oklahoma court enters an order that says the company is dissolved.
After an LLC is Dissovled, it is then “wound up”. Winding up an LLC is simply another legal term that means taking the actions necessary to close down the company.
Check back here on Friday for a post explaining how to wind up an Oklahoma limited liability company.
What does it mean to have your corporate veil pierced?
The veil of limited liability is the legal protection a person or people get when they form an Oklahoma corporate or limited liability company. The company has a separate legal existence, it can own property, make contracts and generally conduct business.
When you hear the phrase “piercing the veil” that means a court is considering taking the protection you receive from having the corporation or limited liability company. If it happens, all of your personal assets could be at risk.
There are certain things that you, as the business owner, can do to maximize the chances that your shield of limited liability will hold up. Read on to find out the steps.
One of the reasons people form an Oklahoma limited liability company is for legal protection for themselves, their assets and their families. There is however a very simple way to put a chink in the armor of some of this protection and it comes from not performing a basic activity.
Oklahoma law requires that limited liability companies file an annual report with the Oklahoma Secretary of State once each year. (You can find the document here). The report is very simple, it’s about a page and you have to pay a $25 fee. If you do not file the annual report prior to the deadline, the Oklahoma Secretary of State will usually change your limited liability company status from active to inactive.
The change in status can mean that the owners of the limited liability company are subject to individual liability for the time the company is an active. The Secretary of State normal e-mails the annual reports out several months in advance of when they are due to the primary business address for the limited liability company. A couple of things I recommend doing:
1. Check the Oklahoma Secretary of State’s website to make sure that your limited liability company is active.
2. If it is not active, take the necessary steps to bring it back to active status as soon as possible.
3. When you receive the annual report form, just take a few minutes to fill it out and send it in or fill it out online.
If you appreciate this post, would you help me with something?
Please share this post on one of the social networks you use. See those buttons below? (Twitter, Facebook, Linkedin). Just click on one of them and you can let your friends know about this issue and help me out greatly. Thank you.