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But would a lawyer ever advise against forming an LLC for a side project that might have liabilities, or just advise on the best language and jurisdiction? To m
by mcbits 8y ago
But would a lawyer ever advise against forming an LLC for a side project that might have liabilities, or just advise on the best language and jurisdiction? To me there is a big difference between "if you really screw up, they could try to pierce the veil and go after you personally" and "if you do everything right and your business still fails, you're automatically personally liable."
- buu700 8y agoProbably not. I'm not saying "don't form LLCs" — it's probably in itself a good idea for any slightly serious project — but rather that it isn't a substitute for complying with the law. I say this from experience because I once made exactly that mistake (formed an LLC that was otherwise unnecessary specifically to protect against potential legal consequences of a side project, only to find out from a Google Alert six months later that a lawsuit had been filed against me personally).
- ccostes 8y ago> find out from a Google Alert Does this mean there was an article or something online before you were contacted about the lawsuit?
- buu700 8y agoYep, that one was an interesting surprise.
- riku_iki 8y agoI am very curious what lawsuit was about..
- buu700 8y agohttps://news.ycombinator.com/item?id=5547151 https://news.ycombinator.com/item?id=5547151 https://techcrunch.com/2013/04/14/napster-fm-is-an-open-source-social-music-player-that-can-be-hosted-by-anyone-in-case-of-shutdown https://techcrunch.com/2013/04/14/napster-fm-is-an-open-sour... https://www.law360.com/cases/52953cd03fdd847f5200a5c8 https://www.law360.com/cases/52953cd03fdd847f5200a5c8