I’m Not Anti LLC — But You Better Think About It
(Updated 1 July 2018)
For various reasons, I’ve developed quite a reputation as an “Anti-LLC” person. Truth is I am not hard over against the LLC form of business organization at all.
But there are a number of things you really need to think through before you join the rush of the new business “lemmings” and jumping off the “LLC Cliff”.
Read This First, Please:
I am not a lawyer, a CPA, Financial Planner nor any other form of regulated, licensed professional. All information here is my opinion and if you need professional advice, then you should seek such advice from a qualified professional.
LIMITED LIABILITY HAS LIMITS
The reason most newbies rush off to form an LLC is expressed with the single word, “protection”.
This is certainly correct, subject to some non-trivial limitations.
But I urge you to stop and think a few moments about what you are seeking “protection” from.
In a court proceeding, a judge can rule that your LLC structure doesn’t protect your personal assets.
The action is called “piercing the corporate veil”, and you can be at risk for it if, for example, you don’t clearly separate business transactions from personal, or if you’ve been shown to have run the business fraudulently in ways that resulted in losses for others. [Read more…] about I’m Not Anti LLC — But You Better Think It Through