Tag Archives: corporation

Accountants Heart LLCs

I’ve never had a client’s accountant recommend any legal form besides the LLC for a new startup. Even though I heart corporations, I still believe the LLC can be an appropriate legal entity for some companies and ventures. But when it comes to a startup looking to (i) raise capital, and/or (ii) issue incentive equity compensation, the corporation is the proper choice.

LLCs are great because they are “simple.” But eventually the startup will have complex legal needs and the startup LLC will end up having to draft corporation-like provisions into its documents. It ends up being much easier to convert to a corporation at that point rather than adapting the LLC to operate like a corporation.

How to Get Served on Facebook

Apparently email has been used in the past to serve legal process on a person, but someone recently got served via the Facebook social network.:

Australian Couple Served with Legal Documents via Facebook

Service of process is important because it gives the defendant notice that a legal proceeding is going to take place. Service of process protects “unknowing” defendants from getting sued (and losing because they didn’t show up) without their knowledge. But many people, like the Australian couple in the article, try to dodge getting served so that they can’t be sued.

For corporations (and other legal entities), the registered agent is the person who will accept service of process on behalf of the corporation.