JayC - 11:06 pm on Dec 17, 2002 (gmt 0)

Be advised that an LLC doesnt offer half of the liability protection it use to

Could you elaborate on that? What has changed to lessen the liability protection of an LLC?

The LLC, like the corporation, is a construct of the individual states. So the specific protections it brings vary depending on the state in which it is formed. In general, though, in most states the LLC form offers the same limited liability (essentially that the LLC itself is the only entity responsible for the company's debts; the individual members are shielded -- though there are exceptions) as is offered by the corporation. Both the LLC and the corporation are separate, independant legal entities from the members or shareholders.

The LLC can also leave you with the same "alter ego liability" as the corporation can, so neither is complete protection... and "limited liability" in either case refers to financial liability for debts of the company, you're still responsible for your own acts of negligence, etc.

But the point is that in most US states the liability protections are pretty much the same for the operators of either form of entity -- and there are some cases where the LLC, being the newer form, has protections that weren't created for the earlier "corporation" structure.