Avoiding the risks of a single member LLC can be helpful when being a single member. Forming a single-member limited liability company can be a great. It’s a way for business owners helping to avoid personal liability for the debts and liabilities of the company. However, being the single member in a single-member LLC, carries with it an enhanced risk.
Creditors may be able to pierce the corporate veil if the assets of the LLC are so connected that the LLC is simply the “alter ego” of the business. In fact, creditors can go after the personal assets of the business owner to satisfy debts of the company.
In addition, there is no guarantee that your personal assets will be protected from liability. The ways single-member LLC’s can avoid these risks are highlighted in week’s episode of All Up In Yo’ Business.
These are just some of the steps that should be taken to avoid personal liability in a single-member LLC. In this episode of All Up In Yo’ Business we discuss avoiding the risks of a single-member LLC.
You should seek the advice of a qualified attorney if any concerns arise about whether or not you are doing it right. Contact us today if you need help with avoiding the risks of a single-member LLC. Also, be sure to subscribe to our YouTube channel for more All Up In Yo’ Business to receive more business information!
Furthermore, here is my handy-dandy Do-It-Yourself Guide to Forming an LLC in Colorado. Though I don’t recommend it, if you insist on forming a single-member LLC yourself, this guide is helpful to ensure you’re doing it correctly.
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