For some entrepreneurs, a limited liability company or LLC is a marriage of the best of both worlds in business. The owners or members receive the tax benefits of owning their own company and are also afforded the protections of a corporation. However, some LLC owners believe that an LLC will completely protect them from creditors or lawsuits. In some cases, the claimant can still find ways to hold the owners responsible for the company’s financial obligations. Our Arlington business attorney can address these concerns with you and help protect your business and personal assets.
Although the laws differ from state to state, the owner is generally liable if he or she is the sole owner and in total control of the LLC. If the owner acted illegally or fraudulently related to the business, he or she might be found responsible. The claimant must have sustained a direct loss due to the owner’s actions. Situations when an owner could be vulnerable might include misrepresentations by the owner to a client, combined company and personal assets or failure to keep accurate business records. Our Arlington business lawyers can suggest ways to protect your LLC from claims. One of the key words in an LLC is the word “limited.” A business owner needs to be financially responsible or he or she could be open to a lawsuit. If you need additional information on the protections and responsibilities of an LLC, call our Arlington business attorney. You can reach Schleifman Law, PLC for help with your business concerns at (813) 655-3136.