Customer Reviews

Starting a Limited Liability Company

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I found this book to be very helpful, especially in the area of writing an Operating Agreement. The authors compare LLCs with other types of business structures and give the advantages/disadvantages of each. They have also added notes and tips throughout the book that will help you resolve issues in setting up your company. I used the tips to compile a checklist for setting up my business. Finally, there are plenty of sample documents that you can adapt for your own use. Although I have gotten an attorney to help with the fine details related to my state, I would highly recommend this book to help you understand and plan an LLC.

This Second Edition, published in 2003 has not been properly updated from the First Edition. The information is INCORRECT. DO NOT rely on the information in this book!!!

I contacted the publisher today, and expect a call back in the next two days, but until this book comes out in a revised printing, please be aware that despite its 2003 publication, it is very very out of date

For example, Appendix B states that only 48 states and the District of Columbia have passed LLC acts, and shows that Massachusetts was the last state to pass an LLC act, in 1995. In actuality, ALL 50 States and the DoC have passed LLC acts, the last State passed its act in early 1997!! That makes this book out of date by OVER 6 YEARS.

In Appendix A, a State by State comparison of LLC laws is similarly out of date, showing information that is 6 years old. For example, Appendix A states that Arizona requires 2 members to form an LLC. I formed an LLC in 1997, in Arizona, with only 1 member. The state laws governing LLCs have been ammended to more consistently conform to the Model LLC Act, and the information in Appendix A is now totally out of date.

I owned the First Edition of this book (which has been reviewed favorably here on Amazon), and when I ordered this Second Edition, I threw away the old edition, so I am unable to compare the main body of the two books to see what has actually been updated.

Erroneous Appendices aside, there are better books on forming LLCs available today. I reccomend the books by Anthony Mancuso published by NOLO. And for persons wanting a very detailed analysis of the taxation of LLCs, "Profits, Taxes, & LLCs" by Holmes F Crouch is a comprehensive, if challenging, read.

This book saved my company quite a bit of money. We were considering incorporation, but this book tuned us into a better alternative! It contains all the info needed to form a LLC on your own.