Question

Manny and Ralph decided to start a small business together. They typed on sheet of legal paper, “Manny Sanchez and Ralph Sader hereby form M & R Construction as a Nevada Corporation.” They signed and dated it and held it in a safe deposit box at a local bank for safekeeping. They ordered business cards and began to install decks on people’s homes in the Reno, Nevada area. What kind of business entity does the two men legally own? If M & R is sued can they reach the assets of the men personally?

SUBJECT: Business Law

Answer 1

answer-

the two formed the limited liability companies because A Limited Liability Company, also known as an LLC, is a type of business structure that combines traits of both a sole-proprietorship and a corporation. An LLC is eligible for the pass-through taxation feature of a partnership or sole proprietorship, while at the same time limiting the liability of the owners, similar to a corporation .

Both men form the partnership and registered it as M & R Construction as a Nevada Corporation as corporation company so it froms LLC company.

In this, the Company has its own separate entity as M & R Construction so if M & R is sued company can not use personal assets of both men because this LLC form Help in separate your personal assets from your business debts.