LLC - protection from personal assets

[Susan Cross]

What is the name of your state (only U.S. law)? FL

I started an LLC to protect my personal assets from any possible suit. I am writing a book and although it's not a kiss & tell memoir, it is a memoir. The subject died and the widow is threatening to sue me over things like:

• she doesn't like the photo I chose for the cover
• she wants full approval rights of the manuscript
• she wants the book to be part of the deceased subject's estate
• she suddenly decided (upon someone else's advice) that I'm a ghostwriter and my name should not be on the book.

From what I've learned, she can sue me if I publish the book and attempt to stop it from being published. I doubt she would do that but she might.

Question is, would be only be able to sue the LLC or would she be able to touch my personal assets? The whole reason I set up the LLC is when he first asked me to write his memoir, just for this possibility downstream.

 

[quincy]

First, you should consult with a business attorney and have your LLC reviewed to ensure your personal assets are protected as much as is legally possible, in the event of a lawsuit.

Generally, with an LLC, the personal liability of the owners will be limited to the amount of money personally contributed to the LLC. When an LLC is sued, a judgment against the LLC is not a judgment against the owners personally.

Under certain circumstances, however, your personal assets can be vulnerable in a lawsuit - and this is why it is important you consult with an attorney.

Any loans from banks that you have taken out to support your LLC were given with your personal guarantee that the amounts loaned would be repaid. A judgment against your LLC and not you does not eliminate your responsibility to repaying these loans.

In addition, an owner of an LLC can still be sued for any personal actions outside the LLC, and if you are found criminally negligent, your personal assets are not protected. If a plaintiff in an action can show that the owner of the LLC IS the LLC, assets of both the LLC and the owner can be used to satisfy a judgment.

Again, consult with an attorney in your area. While LLCs can provide you with some liability protection, an LLC does not entirely eliminate the risk of having your personal assets attached.