Keep the following guidance in mind to lessen the risk that you could lose the liability protection of your LLC:
- Keep accurate, up-to-date LLC records;
- When conducting business on behalf of the LLC, use its full legal name on all documents;
- When signing contracts on behalf of the LLC, be certain that the contract indicates that you are signing as a member or manager of the LLC and not in your individual capacity;
- Never conduct business under a name that is not the full legal name of the LLC unless the LLC has filed a Trade Name Report for the name being used;
- Maintain a separate bank account owned by the LLC and never pay personal liabilities directly from the LLC’s bank account (funds should be distributed to the member first in compliance with the terms of the LLC’s operating agreement); and
- Any assets you intend the LLC to own should be titled in the name of the LLC (e.g., real estate, vehicles). Non-titled assets (e.g., tools, equipment) should be transferred to the LLC via a bill of sale and/or assignment so that the LLC’s ownership is properly documented.
Note that the foregoing is not a comprehensive list of best practices and you should consult with a qualified attorney if you have any questions about how to properly operate as an LLC. Please be advised that this article is not comprehensive and is not a substitute for competent legal advice. You may also consult the Oklahoma Limited Liability Company Act (Title 18 O.S. § 2000 et. seq.) for more information about Oklahoma LLC’s.