Forming an LLC (limited liability company) is a critical first step in protecting one’s personal assets from seizure by business creditors. However, protection isn’t absolute. To provide maximum reassurance, one needs a lawyer’s help with a plan for LLC Asset Protection Henderson NV.
Understanding Protection Provided by an LLC
When an LLC is formed, a business entity is established separately from the owners. The separation provides a form of protection. As a rule, if the LLC is unable to pay debts, the creditors can pursue the business bank account and assets, but the owners’ assets are protected. LLC owners only risk what’s invested in the business.
As with most things, though, exceptions exist. Business owners are liable for personally guaranteed debts and payroll taxes, and they can be held personally liable if sued for wrongdoing. Even with such limitations, LLC protection is an important feature in a strategy for LLC Asset Protection in Henderson NV.
Get LLC Insurance
If someone sues the business owner for negligence, fraud or an accident, the LLC won’t absolve the owner of personal liability-;and a lawsuit can be devastating to one’s finances. For such reasons, it’s important to Visit website and gets good business liability insurance that covers the company and the owner in the event of a lawsuit.
Maintain the LLC as a Separate Entity
In the world of corporate law, shareholders who mix personal and business assets are sometimes held personally liable, and the same may apply to LLC owners. To avoid a risk of liability, it’s important to keep the LLC’s finances, and records separate from owners’ personal records. LLCs should have their own bank accounts and cards, and invoices, contracts, and other papers should be signed and named on the company’s behalf.
Form an Asset Protection Strategy
As noted here, a person’s assets can be seized for LLC creditor payment if the owner is sued for personal negligence or a guarantee. Depending on location, there might be ways to protect part or all of one’s personal assets from creditor claims. Asset protection strategies such as separating finances and buying insurance can help a client of Grant Morris Dodds keep their personal assets away from a business’ creditors. Visit for more information.
