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How can I protect my family my personal assets if my LLC is…

How can I protect my...
How can I protect my family my personal assets if my LLC is being sued or potentially could have issues as far as fraud cases
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Answered in 11 hours by:
3/9/2018
Lori
Lori, Attorney
Category: Business Law
Satisfied Customers: 1,197
Experience: Business law attorney with over 25 years experience
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Hello. Let me see if I can assist. I am a FL attorney with over 25 years experience.

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Generally the LLC acts and conduct only subject the LLC to liability and lawsuits. It is very difficult for a creditor to pierce a corporate veil so long as the LLC is a separate a distinct entity. For the creditor or other plaintiff to be able to get at the personal assets of the member of the LLC, the creditor/plaintiff will have to pierce the corporate veil by showing that the LLC is really the "alter ego" of the member or another entity. In other words, that the LLC was just set up a shell company to shield the member or the other entity.

In Dania Jai-Alai Palace, Inc. v. Sykes, the Florida Supreme Court established the standard to be applied in a piercing the corporate veil claim. The Court held that in order to pierce the corporate veil, a plaintiff is required to prove both that the corporation is a mere instrumentality or alter ego of the defendant and that the defendant engaged in “improper conduct.” The Court reasoned that the corporate veil should not be pierced unless it is shown that the corporation was organized or employed to mislead creditors or to work a fraud on them.

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T​o protect your personal assets - be sure that the assets/property are not titled in your individual name. For example, be sure to have your real property in you and your spouse's name and be sure you have homestead exemption as well. Be sure bank accounts are jointly titled with other family members as well.

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Lori
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