5 ms·

I am not a lawyer. But my understanding is that it does shield your personal finances to some degree.

• thoughtstheseus 7y ago
  Also not a lawyer but it seems unlikely. You can’t create a legal shell just to shield yourself from liability. There needs to be an actual entity. Or not, again not a lawyer.
  • firethief 7y ago
    Interesting. So what do you suppose the function of a Limited Liability Company with pass-through taxation would be?
  • Terretta 7y ago
    Depends if you are keeping the entity and its finances separately. If you can demonstrate your finances are not commingled, they can be considered as separate and distinct even when reporting taxes as pass through. So, for instance, document the seed money to the LLC, and any other money you put in, carry on the books. Similarly, pay yourself a salary or if doing “equity draw” again keep it full documented. Never pay for personal things with company funds.