The business structure known as a limited liability company (LLC) is becoming more popular with business owners who want to limit their legal exposure. “When a business is incorporated as an LLC, the owner or partners’ personal assets are generally protected from litigation or from being used to repay the company’s debts.” This article discusses the steps an LLC will need to follow when deciding to purchase stock. The first step involves establishing the LLC by following the registration requirements of the state that the LLC is going to be established in. Usually a person will file the LLC articles of organization through the Secretary of State’s office. It is also important to have an operating agreement that clearly expresses the authority of designated owners and managers to purchase stocks on behalf of the company.
See How to Buy Stocks on Behalf of an LLC, My San Antonio, February 12, 2016.
