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Understanding a LLC

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puenil

Junior Member
What is the name of your state? AR

LLC's are pretty new to me. I am not sure of the benefits.

I am a single owner "service provider" company. I carry $30K in insurance. Right now, if I cause $31K+ in damages, I am responsible for the amount over $30K. How would a LLC protect me PERSONALLY and PROFESSIONALLY?

I am not concerned with the tax benefits, etc; as I do not think things will change TOO much. But the "limited liability" as made my ears perk up.

Thank in advance for your help and understanding.
 


JETX

Senior Member
puenil said:
I am a single owner "service provider" company. I carry $30K in insurance. Right now, if I cause $31K+ in damages, I am responsible for the amount over $30K.
Actually, you are responsible for ANY and all damages you cause. The fact that you might have coverage for the first $30k of damages does not waive your responsibility.

How would a LLC protect me PERSONALLY and PROFESSIONALLY?
http://sbinformation.about.com/cs/ownership1/a/LLC.htm
http://www.roninsoft.com/llc.htm
 

puenil

Junior Member
Thanks for the reply.

So, I take it that the "limited liability" only applies to debts and nothing else? Is that correct?

If so, my ultimate goal is to separate my PERSONAL life from my BUSINESS life. There are many ways someone could "take everything; including my house" and that is what I would like to avoid. I don't want someone to be able to sue me and take my house, cars, microwave, etc. (personal items) in order to pay damages. However, they can sue to company and receive compensation from whatever (sale of equipment, etc).

Would a corporation have the benefits that I am looking for?
 

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