Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Hello: This is Phillipsesq. Welcome to JustAnswer! I am reviewing your post, and I will post my response very shortly. Thank you for your patience.
Now I want to start a single owner LLC to get the liability protection, but it seems that to get the protection I would need to get the LLC's finances separate and minutes etc. , so that a suing lawyer will not be able to breach the corporate veil.
My issue is that I am not planning to make money from the web site/project anytime soon, and I don't see it making sense that I open a bank account for it now, and create minutes for meetings.What is my best bet to get liability protection on this project which is non-profit for now and the near future? thank you
Response: Unfortunately, if you want the LLC to be considered a a separate legal entity and enjoy protections of separate legal entity, you cannot commingle the LLC's debts/assets with your personal assets. Eventhough the LLC is not making any money now, you need to separate the LLC's operations from your personal obligations to shield your personal assets from being used to satisfy the LLC's legal obligations--to maintain the LLC's separate entity's veil. So, this means that you need to set up a bank account for the LLC, have separate finances and minutes, etc. for the LLC. There are some banks that offer free checking for small businesses. You can research and find those banks in your locality and open account with one of the banks.
I am sorry that this is not the response that you were hoping for. However, I have ethical and professional obligation to provide you with honest information eventhough that information may not be in your favor.
You are quite Welcome!
Kindly take a minute and use the popup screen to give a 5-star rating to my response so that I can receive proper credit for addressing your concerns. There is no additional cost to you for giving a 5-star rating. Positive rating is how I get paid for answering questions on the site.
Thank you for your cooperation.