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Ok, I’ll google it for you. But I do encourage you to talk to your attorney so you can pay for her bad news like I did. “ Personal Liability for Your Own Actio
by encoderer 7y ago
Ok, I’ll google it for you. But I do encourage you to talk to your attorney so you can pay for her bad news like I did.
“ Personal Liability for Your Own Actions
There is one extremely significant exception to the limited liability provided by LLCs. This exception exists in all states. If you form an LLC, you will remain personally liable for any wrongdoing you commit during the course of your LLC business. For example, LLC owners can be held personally liable if they:
personally and directly injure someone during the course of business due to their negligence
fail to deposit taxes withheld from employees' wages
intentionally do something fraudulent, illegal, or reckless during the course of business that causes harm to the company or to someone else, or
treat the LLC as an extension of their personal affairs, rather than as a separate legal entity.
Thus, forming an LLC will not protect you against personal liability for your own negligence, malpractice, or other personal wrongdoing that you commit related to your business. If both you and your LLC are found liable for an act you commit, then the LLC’s assets and your personal assets could be taken by creditors to satisfy the judgment. This is why LLCs and their owners should always have liability insurance.”
- P_I_Staker 7y agoThat makes sense though, and is what I always thought. Proctects you as an honest and competent employee of the company from liability, assuming you're acting in good faith, from the actions of the company. Why on Earth would anyone think it's a blank check for any behavior?
- WillPostForFood 7y agoAnd the same is true of S and C corporations. There is no legal structure that is going to protect you individually from wrongdoing.
- encoderer 7y agoThis is not just about breaking the law. Being negligent can cause personal liability. This is the kind of liability people often think the “LL” protects them from.