The Rights Of Missouri Landlords Are About To Be Trampled On Again

Section 347.057  of the Missouri Limited Liability Company Act states “A person who is a member, manager, or both, of a limited liability company is not liable, solely by reason of being a member or manager, or both, under a judgment, decree or order of a court, or in any other manner, for a debt, obligation or liability of the limited liability company, whether arising in contract, tort or otherwise or for the acts or omissions of any other member, manager, agent or employee of the limited liability company.”  So, like a corporation, LLC’s provide protection to the individuals, (or other LLC’s, or corporations) that own the LLC from personal liability for business conducted by the LLC.  Without the ability to protect one’s personal assets from liability from business operations, many businesses wouldn’t exist nor would the products and services they provide.  For example, would you be willing to buy stock in a company such as Ford, or Johnson and Johnson if you were going to be personally named in all the lawsuits brought against those companies?  I doubt it.

Landlords, rehabbers, developers and speculators often own and operate their real estate inside of LLC’s for many reasons including for liability reasons, tax benefits as well as to sometimes conceal or protect the identity of the individuals or companies involved.  All of these things (including concealing the identity of the members of the LLC) are lawful purposes of the LLC and have legitimate purposes.

Proposed legislation could strip protection away from property owners in Missouri:

House Bill 864 (bill contents below), introduced by Representative Sheila Solon from District 031 Continue reading “The Rights Of Missouri Landlords Are About To Be Trampled On Again