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Special Member of an LLC?

gte011hgte011h subscriber Posts: 1
edited March 2008 in Business Planning
I have been asked to be a special member of a single member LLC and nee to know the liabilities. 
 
I understand it serves to keep the LLC from disolving in the event that the single member dies or is incapicated.  I also know I have no interest, or authority with the LLC, but what if the single member dies?  Am I liable for the debt or anything else?
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Comments

  • robertjrobertj subscriber Posts: 0 Member
    gte011h
    Your concept of special member is correct.  
    However, I would advise you to read the operating agreement carefully, especially the indemnification section to make sure that you is not liable for anything.  Also be aware an LLC Operating Agreement can be modified to the desires of the members, so you should read the entire document to be certain of his responsibilities, rights and obligations.
     
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  • infinique1infinique1 subscriber Posts: 0 Member
    It's better to start off with a Sole Proprietorship. You will have lesser hassles than a partnership.
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