Legal Question in Business Law in Wisconsin
Why is it important the a LLP or LLC disignate this to the public
2 Answers from Attorneys
If you are operating as an entity, it is important that you say so. You do that by including the entity's designation on its stationery, business cards, ads, etc. The reason you do this is to show that it is the entity, not you personally, who is carrying on the business. Most entities are limited liability entities. That means they protect the owners to some degree from personal liability if the entity has a claim against it. One way a claimant may get at the personal assets of the owner is to show that the entity wasn't acting as a separate entity from the owner. To do that, the claimant attempts to show that the entity didn't hold itself out as a separate entity by claiming to be an LLP, LLC, Corporation, or whatever.
The other attorney is right on point here. The main reason is to put everyone on notice that is is a limited liability entity they are dealing with. Consult with an attorney in your area for specifics.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
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