Piercing the veil of an LLC

[gpilling]

I have been reading a book on protecting financial assets, and was shocked at the number of ways the LLC veil could be pierced. (An LLC is a Limited Liability Company, which is supposed to separate your business from your personal assets)

The book lists a number of ways that a LLC would provide no protection: If you as the LLC owner did something, you can get sued personally as well as professionally; if you co-mingle any of your assets the LLC will not protect you; if you simply finance business assets in your personal name without making a written legal agreement with your LLC, your protection could fail.

Scary, and tells me that I have a lot of contracts to write with myself.

[Fortune Hunter]

tells me that I have a lot of contracts to write with myself.

Or use an "S" Corp, you might even find it helps with taxes. LLCs are typically an expensive way to do business in terms of taxes or least it was for me. I like the corp structure much better. I would recommend you talk to a competent attorney and accountant.

[willybfriendly]

Having talked to an accountant and a attorney...

No business structure will protect one from their negligence. If I run over someone in the company car I can expect both the company and myself to be vulnerable to claims.

However, if an employee runs over someone in the company car, and I have the proper business structure, only the employee and the company are vulnerable to claims and my personal assets are shielded.

Food for thought?