
Robert A. Marsico
Partner
201-896-7165 rmarsico@sh-law.comPartner
201-896-7165 rmarsico@sh-law.comMany limited liability companies (“LLCs”) are created in an effort to decrease personal liability. However, if you are a sole owner of an LLC, it is important to do more than just create the LLC. There are many actions that must be taken after filing the organizational document, be it a Certificate of Formation or Articles of Organization, in order to ensure you are protected.
When a creditor takes action against the LLC, you can bet that an investigation will be undertaken to determine whether you have maintained a degree of separation between you and your business. In short, does your business act like an entity? If not, there is a significant risk that you may be held personally liable for the actions of the LLC.
Below are a few tips for making sure you are maintaining the necessary separation between your LLC and yourself:
While this list is not exhaustive, it is indicative of the need for the sole owner of an LLC to exhibit care in operating the LLC as a legally separate entity, and thereby limit to the potential for personal liability exposure.
If you have any questions about creating a limited liability company or would like to discuss your personal liability, please contact me, or the Scarinci Hollenbeck attorney with whom you work.
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