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by kube-system 1565 days ago
Generally speaking, an LLC is going to protect you from debt that your company owes. So, you won’t lose your personal assets if your company goes out of business. However, it doesn’t protect you from criminal harm, nor does it protect you if you mix business and personal expenses. (e.g. if you personally guarantee a loan for your company, you’re still on the hook)

I’m just someone who has taken law courses in undergrad, not a lawyer, and you really should talk to one if you are seriously considering this. They will have much better feedback for your particular situation and questions like this will not be expensive to have answered.
1 comments
dataflow 1565 days ago
My guess is the scenario they're worried about is neither debts nor criminal harm, but civil liability. Like say the counterparty claims you had an implicit warranty regarding X, but in fact you didn't, and that they suffered damages as a result. Then can they go after your personal funds to recover damages (if they win)?
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kube-system 1565 days ago
According to this [0] I wouldn’t rely on an LLC to protect me from torts, especially if it’s a single member LLC. It also says that it varies by state, so this is an even better reason to chat with a lawyer about the particular issues you’re concerned about and how your state would treat it.

[0]: https://www.nolo.com/legal-encyclopedia/limited-liability-pr...

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