jilljilljill
New member
@alannasteph LLC = Limited Liability Corporation. State regulations vary, so the liability limitation may not be the same everywhere. But as a corporation, an LLC is a legal entity distinct from its ownership.
The ownership of any corporation (LLC, sub-S or even C) can sometimes be personally liable for corporate debts. That happens when an attorney is able to "pierce the corporate veil". This usually occurs when an owner comingles corporate and personal funds. As it's easier to do that with a single member LLC, it's true that there is a higher risk - but the risk isn't because it's an LLC, it's because the owner didn't follow all the rules.
The ownership of any corporation (LLC, sub-S or even C) can sometimes be personally liable for corporate debts. That happens when an attorney is able to "pierce the corporate veil". This usually occurs when an owner comingles corporate and personal funds. As it's easier to do that with a single member LLC, it's true that there is a higher risk - but the risk isn't because it's an LLC, it's because the owner didn't follow all the rules.