COLORADO NOW AN ATTRACTIVE LIMITED LIABILITY STATE
The Colorado Supreme Court recently ruled that owners and
managers of limited liability companies (LLC) now have less exposure to
personal liability and no fiduciary duty toward creditors should the company
become insolvent.
Limited liability companies are primarily governed by each
state’s LLC Act and LLC operating agreement. It is in this way that courts
across the nation are being asked to determine a standard for LLC
accountability. This landmark ruling makes Colorado very attractive to potential owners
and managers forming new LLCs and serves as a precedent for other states.
The rental industry in Colorado could stand to benefit greatly
because of this appealing reduction to personal liability. Existing property
owners operating under LLC can now take a deep breath and new property owners
will be drawn to the state for its lower risk investment potential.
-H. Evans
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