Do LLCs Protect Property Owners From Personal Liability?
Q: Do LLCs Protect Property Owners From Personal Liability? Eric, Edison, NJ
A: That’s a great question, Eric. As you may know, LLC is an acronym that stands for limited liability company. An LLC is a business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation. LLC owners generally are protected from personal liability for business debts and claims, which means that if the business owes money or faces a lawsuit, only the assets of the business itself are at risk.
Creditors usually can’t reach the personal assets of the LLC owners. However, LLC owners can lose this protection by acting illegally, unethically, or irresponsibly. So, to answer your question, Eric, it really depends.
As a general rule, you should always conduct yourself in an ethical and responsible way.
Thanks for your question, Eric, good luck!
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I’m Gerald Lucas and I’ll see you again soon.