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From the research I did, limited liability is not at all to "protect liability between multiple participants", but indeed protects you from outside claims. It i
by wdrw 9y ago
From 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