I was hoping my inaugural post here at Alt.law would be something a little less banal, but I came across this article at the Harvard Business Law Review Online—LLCs and Corporations: A Fork in the Road in Delaware by Joshua P Fershee—that caught my attention.
The article laments the treatment of LLCs as sort of half corporation/half partnership hybrid by many state courts, highlighting the unresolved issue in many states of whether creditors can “pierce the veil” and hold LLC members personally liable, as in the case with a corporation. It is not so undecided here in the great state of Washington, where our Limited Liability Company Act explicitly provides for piercing the LLC veil under the same test developed for corporations.
I agree with the author that the short treatment given to LLCs as a distinct legal business entity deserving of their own body of law is regrettable. However, given the LLCs’ ever-growing popularity, I think it is only a matter of time until the law accepts them as a full member of the club.
I promise more exciting posts in the future.