LLCs & Corporations | Roswell, NM

Business Law

LLCs and corporations are used to protect business owners from being personally liable for business debts. But if you don’t walk like a duck, act like a duck, and quack like a duck, you are not going to be treated like a duck. If you don’t walk, act, and quack like an LLC/corporation, you are not going to be treated like one and, you could be held personally liable for the business debts. Having ‘the duck’ speech is an important part of preventing personal liability.

What you don’t know CAN hurt you. Know the right way to set up your business. Call Bristol Law at (575) 625-5284.

Why do I need to form a business entity?

We form business entities, like an LLC or Corporation to protect us individually from the debts of the business.
What is the difference between the LLC and a Corporation?

A corporation has lots of annual paper work that most people fail to keep up with. An LLC, Limited Liability Company, has none of that paperwork. It is a much easier business entity.
The State website has forms that I can use, why hire an attorney to do the paperwork?

Yes, there are forms you can use. We have seen accountants set up LLCs, also. However, the reason we have LLCs and corporations is to protect us individually from the debts of the business.

However, if you don’t act like an LLC/corp., you won’t be treated like one - you will be held personally liable (which is what we were trying to avoid). In the above example, the failure to keep up the annual paperwork of the corporation is a failure to act like a corporation and you won’t be treated as one. Advertising, signing contracts, are just other examples of things where people do it wrong all the time and are held personally liable for the business debts. That is why we give our clients the “Duck Speech”. You have to walk like a duck and quack like a duck if you want to be treated like a duck. You have to act like an LLC/corp., advertise like an LLC/corp., and sign like a LLC/corp., if you want to be treated as an LLC/corp. Forms online and accountants don’t give you the duck speech.