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> Mostly did it to ensure limited liability Did you consult with a lawyer? I've heard that "limited liability" doesn't really apply to one-person operations, i
by losteric 9y ago
> Mostly did it to ensure limited liability
Did you consult with a lawyer? I've heard that "limited liability" doesn't really apply to one-person operations, it's intended to protect liability between multiple participants - though that may depend on the state.
- wdrw 9y agoFrom the research I did, limited liability is not at all to "protect liability between multiple participants", but indeed protects you from outside claims. It is indeed not bullet-proof (for example, if a one-person corporation owes taxes they can still go after your assets), but it is much better than nothing.
- losteric 9y agoMy lawyer said that's not the case, at least in my state. LLCs protect against criminal and contractual liabilities, but not tort liabilities. I google'd it since I couldn't remember his exact legal reasoning, this blog post just about sums it up: https://www.litigationandtrial.com/2009/05/articles/attorney/automobile-accidents/can-i-set-up-an-llc-to-avoid-personal-liability-in-a-lawsuit/ https://www.litigationandtrial.com/2009/05/articles/attorney... Certainly better than nothing, but I was personally not concerned with criminal/contractual liabilities