Steve Sims EA llc

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So you operate as an LLC and think you can’t be sued personally... Think Again!

Source: Limited Liability Company Center

Actions of a Member

Every member who actively participates in the business of the LLC runs the risk that his action or inaction will result in personal liability. 

This is particularly a risk of a service business in which the members provide the key service. If you are an electrician and you leave an exposed wire that electrocutes someone, your LLC is not going to protect you.

Similarly, if you make promises about your product or service that are not true, the first claim may be against the LLC for breach of contract, but if the LLC cannot perform or pay damages, the injured party may come after you for fraud or a similar claim based upon your own action.

Even if you have an employee who committed the action, you may not be out of the woods. If you personally hired the employee, the injured party may have a claim against you for negligent hiring if a reasonable person would not have hired that employee.”

Click here for full article:  https://www.limitedliabilitycompanycenter.com/llc/asset-protection/

steve@stevesimsea.com