How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask J. Warren Your Own Question
J. Warren
J. Warren, Attorney
Category: Business Law
Satisfied Customers: 2192
Experience:  Experience in general business transaction and formation matters.
Type Your Business Law Question Here...
J. Warren is online now
A new question is answered every 9 seconds

I'm going to form an LLC, and place funds into the business

Customer Question

I'm going to form an LLC, and place funds into the business account. I am divorced for 2-years and pay alimony/maintenance. Would my assets be protected in an LLC I form? Thanks...
Submitted: 2 months ago.
Category: Business Law
Expert:  J. Warren replied 2 months ago.

Hello and welcome! My name is ***** ***** I will be helping you today! It will take me just a few minutes to type a response to your question. Thanks for your patience!

Expert:  J. Warren replied 2 months ago.

Forming an LLC creates a legal entity separate from the members of the LLC. This creates a shield of liability and protects the personal assets of the members. In general, the amount a member invests is at risk of loss but personal assets such as house, personal accounts, cars etc…. are separate and are shielded from creditors.

An exceptions would be debts that are personally guaranteed by the member of an LLC. In addition, if the member does not operate the business as a separate entity such as commingles personal checking and business checking, there is risk the shield may be pierced and the member is subject to personal liability.

If a member is held liable for personal actions not associated with the LLC, the LLC membership is a personal asset of the member. The assets of the LLC are not but the membership interest is. That is a creditor or judgment creditor could place a lien on the membership interest of the LLC if the member is personally sued and held liable. The membership interest is a personal asset of the member.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer at the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Expert:  J. Warren replied 2 months ago.

Hello again gentle reminder to rate my service. Pressing a positive rating will not cost any additional money - it is simply the trigger used by Just Answer to pay me for my time (pressing the middle star or the fourth or fifth star on the right are all positive rating buttons). I am simply touching base. Let me know. Thanks!

Related Business Law Questions