How can you ensure that your personal assets are protected if you form an LLC?
Creditors of your business cannot go after your personal assets in the event of a lawsuit against your business if you’ve set it up right . An important thing to note is that it's necessary to have an LLC agreement and an operating agreement . The reason for this is that creditors can still go after your personal assets if they don't have a written contract, but they CANNOT do so if they have a written contract. You want to avoid them piercing the corporate veil and avoid having the company as your alter-ego. When you form an LLC, you're creating a legal entity that protects your personal assets from any legal liability that your business incurs. But it's important to realize that there are two different kinds of liability: direct and indirect. Direct liability is when you're personally responsible for something like breaking a contract or violating someone's rights. Indirect liability is what happens when the actions of your business directly cause harm to ...