The Nevada Supreme Court affirms vast protections for the Managers and Members of Nevada Limited Liability Companies

Aviva Y. GordonPartner, Gordon Law

As we have discussed earlier, Nevada is the best place to start a business. This is particularly true for Limited Liability Companies (LLCs).  On August 3, 2017, the Nevada Supreme Court ruled that the protections of the owners or operators of an LLC is nearly absolute.

The Nevada Supreme Court Decision of Gardner v. Henderson Water Park, 133 Nev. Adv. Op. 54, held that a member (owner) of a Nevada LLC cannot be personally liable for the LLC’s liabilities solely by virtue of being a member (owner).  The Supreme Court reiterated that a member is not even a proper party to a lawsuit for actions or the negligence of an LLC.

This means that as an owner of an LLC, you have an absolute protection for you and your personal assets.  This is not necessarily true for a corporation.  

Please contact Gordon Law if you are starting a business or looking to change its structure.