jwbryson1
TPF Noob!
- Joined
- Apr 21, 2011
- Messages
- 4,280
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- Can others edit my Photos
- Photos OK to edit
Is there much protection added going LLC?
:scratch:
2 words: LIMITED LIABILITY
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Is there much protection added going LLC?
jwbryson1 said::scratch:
2 words: LIMITED LIABILITY
jwbryson1 said::scratch:
2 words: LIMITED LIABILITY
"Limited " NOT "none"
Please note that under certain circumstances, an individual member may be liable for the debts of an LLC. These circumstances include:
Disadvantages
- If a member personally guarantees a debt.
- If the LLC fails to have a separate bank account and personal funds are intermingled with LLC funds.
- If the LLC has minimal capitalization or minimal insurance.
- If the LLC fails to pay state taxes or otherwise violates state law (like defrauding consumers).
Cost. LLCs cost more to set up and run than a sole proprietorship or partnership. For example, there are the initial formation fees, filing fees and annual state fees. These costs are partially offset by lower insurance costs.
Formal organization. Although an LLC requires less formalities than a corporation, there is still more paperwork involved than a sole proprietorship or partnership. A sole proprietorship or partnership can commence and operate without any formal organizing procedures; not even a hand written agreement is required.
Separate records. In order to maintain the separate form of the LLC and maintain the liability protection of its members, the owners of the LLC must carefully maintain separate records and keep their personal business separate from the LLC's business. Even more importantly, the LLC's money should never be intermingled with personal money.
jwbryson1 said::scratch:
2 words: LIMITED LIABILITY
"Limited " NOT "none"
I suppose that would be better than the FULL liability of the Sole Proprietorship though, right?
https://www.legalzoom.com/llc-guide/llc-sole-proprietor-partnership-comparison.html
Some additional LLC info;
jwbryson1 said:Correct, MJHoward. The only way to avoid all liability and to have "no liability" as pixmedic suggested would be to sell your camera and stay home. :mrgreen: The point in incorporating is to gain limited liability and avoid UNlimited liability.
I like CCericola's answer =)