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Is Your LLC Actually Protecting You?
Forming an LLC is only the first step. Real protection depends on how you operate your business daily. Courts may disregard an LLC if formalities are not followed, exposing personal assets.
Common Mistakes
• Mixing personal and business funds
• Paying personal expenses from business accounts
• No operating agreement
• Signing contracts personally
Best Practices
• Maintain separate bank accounts
• Use an Operating Agreement
• Document key decisions
• Sign contracts in the LLC name
Real-World Risk
If an LLC is treated as an 'alter ego,' courts may allow creditors to pursue the owner's personal assets.
Legal Tip
Review your last three contracts. If signed individually, you may have assumed personal liability.
Contact
Schedule a consultation to assess your risk.
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