We’ve all heard the expression that “knowledge is power.” The unfortunate truth is that knowledge is only applicable to the powerful – and most of us are not powerful enough to influence that statement. One topic that could be particularly powerful in the right circumstances, is knowledge regarding the ability of an LLC to represent itself in court. To make this practical, knowing how to legally represent your LLC can save you a lot of money at legal fees. When you are running a business on a tight budget, sometimes it is necessary to run the legal side of things yourself. Here come those powerful tidbits of knowledge!
What is an LLC? A limited liability company, also known as an LLC, is basically a company that limits the personal liabilities of those who own it. Basically, if the LLC goes into debt or loses a lawsuit, the personal property of the owners cannot be taken by other companies or individuals to pay off those debts or fill the court’s awards. Only what is owned in the LLC can be seized to pay off debts or satisfy awards.
In many states, LLCs are allowed to represent themselves in court. However, there are some states where this is not legal, and legal representation is required. Obviously, if you are in one of these states you will want to follow the laws and seek legal representation. Not knowing the laws of your state can cost you in so many ways. If you are in a state where an LLC cannot represent itself in court, then the possible ways to save money are to go with a flat-rate legal service and pay only what you need them to do, panel attorney services, or family-law attorneys who offer free consultations.
Things to Remember: LLCs have the right to represent themselves in court in many states. Some states require LLCs to have legal representation in court. Knowledge is power and very useful in many situations to help save money. Seeking the help of a paralegal team, which is usually a much cheaper way to go than an actual attorney, can be very useful in many situations. The hardest part about legal representation is that you can often spot the lies and deception, but choosing to believe in what you see takes more faith. Find the strength in that faith and live richly on a budget.