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#158502 - 06/29/06 06:54 PM Inc. on forms etc.
Helectric Offline

Registered: 01/07/05
Posts: 91
Loc: Brandon, SD
I'm thinking of converting to an LLC. I seem to remember reading that if I do then I must show this ("LLC" or "Inc") on all of my business forms i.e. proposals, business cards, & corespondance. Is this correct? If so, then what about truck/van markings?

Business, Office, Estimating, Legal:
#158503 - 06/30/06 11:50 AM Re: Inc. on forms etc.
TNSunny Offline

Registered: 12/06/05
Posts: 44
Loc: Tennessee
Helectric, are supposed to state your LLC or Incorporated status on all advertisements and other public documents such as checks, bills, etc. (Make sure you use the right one: either "LLC" for a Limited Liablity Company, or "Inc" for a corporation.) The reason for this is that it puts the public on notice that the individuals with which they are dealing have limited liability as to the debts (and some of the liability of) the company. If you don't do this, then a court could rule that you have "pierced the corporate veil", and that you are personally liable for the debts and obligations of the company. In other words, the court could rule that the public was lead to reasonably believe that you and the company are indistinguishable (i.e. a sole proprietorship), and therefore they will treat you as such. You definitely don't want that to happen.


P.S. This even applies to truck/van markings. Leaving it off of one or two things isn't going to hurt you in and of itself, but if you leave it off of too many things it could. Best to play it safe and list your limited liability status on everything. Better safe than sorry.

[This message has been edited by TNSunny (edited 06-30-2006).]

#158504 - 06/30/06 02:44 PM Re: Inc. on forms etc.
renosteinke Offline
Cat Servant

Registered: 01/22/05
Posts: 5305
Loc: Blue Collar Country
WHo do you want to get paid? Who do you want to be sued? Who is on the hook for taxes?

The law sees "Helectric" as Mr "H" doing electric work, and will hold Mr H to account.

"Helectric Inc" or "Helectric LLC" are seen by the law as their own person, separate from Mr. H.

Anything the customer sees, that fails to mention the "LLC" or "INC" might be used to argue that they were dealing with Mr. H, and not Helectric Inc.

#158505 - 06/30/06 09:40 PM Re: Inc. on forms etc.
Helectric Offline

Registered: 01/07/05
Posts: 91
Loc: Brandon, SD
Thanks for the informative replies. I was thinking of this as a formality but it's obviously more than that! I'll be making some changes.

#158506 - 07/02/06 07:07 PM Re: Inc. on forms etc.
hbiss Offline

Registered: 12/16/03
Posts: 893
Loc: Hawthorne, NY USA
Well, it would be best to check with your attorney. I believe the advice given is good and if it's no problem for you to do then that's the end of it. However there are lots of corporations who do not put "Inc" after their name in all cases. Probably lots of reasons for not doing it, particularly with logo's and name identities.

I would think that if you aren't using your own name for the business this would be less of a problem.


[This message has been edited by hbiss (edited 07-02-2006).]


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