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I am working in a small single owner LLC and I've been

I am working in a...
I am working in a small single owner LLC and I've been offered a piece of the business. I wanted to talk to someone about how to structure that to protect myself financially.
JA: Can you tell me what state the LLC is registered in?
Customer: Alabama
JA: Has anything been filed or reported?
Customer: The business has been around for 8 years.
JA: Anything else you want the lawyer to know before I connect you?
Customer: Not that I know of
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Customer reply replied 8 months ago
Specifically I'm looking to see what % of ownership I need to stay under in order to not be financially liable or have to share my personal finances...or are all Corporate Officers financially liable no matter the %? Thanks.
Answered in 17 minutes by:
5/15/2017
Matthew Breecher
Matthew Breecher, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 287
Experience: Director
Verified

Hello, I would like to assist with your question. Please remember, as per the terms of this website, Answers of Experts on the Site are to be used by Customers for general information purposes only, not as a substitute for in-person evaluation or a specific professional opinion.

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Customer reply replied 8 months ago
Okay thank you, understood. I was told by a banker that I need to stay under 20% and I just wanted to see if that was true?

The benefit of a LLC is that owners, regardless of ownership, are not liable for "most" corporate debt or liabilities. Now, regardless of how much or how little you own, if you act as an officer you could be help liable for some financial debts if you acted negligently. This is called piercing the corporate veil.

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I hope I answered your question with sufficient detail, accuracy, and completeness based on the facts communicated. I would be happy to expand my answer should you need clarification; before you rate my answer. Accordingly, please rate my answer, based on thoroughness and accuracy, rather than any good or bad news/content. We (the experts) are only compensated when an answer is accepted and rated. I appreciate your prompt response. Sincerely, ***** ***** Breecher, CPA.

Matthew Breecher
Matthew Breecher, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 287
Experience: Director
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Customer reply replied 8 months ago
Thank you.
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Matthew Breecher
Matthew Breecher
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Category: Tax
Satisfied Customers: 287
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