How does an LLC protect me? - Posted by kathleen

Posted by Bill K. (AZ) on May 10, 1999 at 22:02:35:


As long you formed the LLC properly, and are maintaining appropriate records, the LLC will protect your personal assets. It is imperative that the officer of your LLC sign all documents AS the officer of the LLC so that the other party is not mistaking your signature as YOU personally. So, in your example, I would sign as follows:

ABC, Inc by John Doe, its President/Manager/whatever.

This way, the other party understands your role in the LLC.

Finally, the LLC does not provide privacy for the one who must run/manage the LLC. It’s greatest advantage is in member’s personal asset protection. In my state, only members of the LLC who own more than 20% of the LLC must be publicly announced. So, if you want privacy in Arizona, you’ll have to own less than 20% of the LLC and not participate as the member-manager.

I hope this helps.

Bill K. (AZ)

How does an LLC protect me? - Posted by kathleen

Posted by kathleen on May 10, 1999 at 21:52:51:

If I have an LLC, how do I sign the purchase contract. I have seen them signed - ABC, Inc. by John Doe. If John Doe is signing for the LLC, this doesn’t provide any privacy. Does it protect personal assets?

Bronchick materials - Posted by Ben

Posted by Ben on May 11, 1999 at 12:03:23:

Bill Bronchick covers these issues in depth in his articles and on his website