Limited Liability Companies (LLCs) are so new to the United States that the case law is still very unsettled. While we have not yet heard of any problems with LLCs other than undocumented and subsequently disputed agreements between LLC members, it appears that there is the potential of tax and liability problems when a LLC does business in more than one state. In theory, each state could treat the liability protection and possibly taxation exposure differently. Most attorneys do not feel that this problem is likely to arise, but you may want to obtain a legal opinion, so you at least have some potential leverage for assistance from the lawyer who issued the opinion.

Interestingly, some lawyers who have raised this issue explain that the primary area of potential exposure is within the USA. They feel that international acceptance of LLCs is so widely established that there is little exposure from this issue outside the USA.