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J. Warren
J. Warren, Attorney
Category: Business Law
Satisfied Customers: 2242
Experience:  Experience in general business transaction and formation matters.
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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: 1 year ago.
Category: Business Law
Expert:  J. Warren replied 1 year 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 1 year 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.

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Expert:  J. Warren replied 1 year ago.

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