The Virginia Limited Liability Company Surpasses The Corporation As The Preferred Entity For Business
In 1991, the Virginia legislature passed the Virginia Limited Liability Company Act which provided a new legal entity alternative for business owners in Virginia. Accordingly, most small business operated without the use of a legal entity and this created an unlimited personal liability situation for its owners. While there has always been the alternative of starting a corporation for business, the complication and compliance requirements of a corporation turned off many small business owners.
The Virginia limited liability company offered business owners the same liability protection as the Virginia corporation but with much more simplicity when it came to governance. For one thing, the limited liability company does not require centralized management or a Board and has no meeting mandates.
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