Quote:
Originally Posted by Biorin
This. If anyone sues your business or comes after you in any way with a sole proprietorship, they can come after you for everything you're worth. With an LLC, worst case your company goes bankrupt, but you've still got everything you have. Tax rates are typically more favorable as well.
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Generally speaking this is true, however, there have been a number of court cases to piercing the LLC corporate veil and they using the connection between members and LLC assets as way in. Thinking you are 100% protect is not true anymore. This advise came from a lawyer who I know who is familar with this stuff and gives good advise.
http://www.nolo.com/legal-encycloped...eil-33006.html
http://www.forbes.com/sites#/sites/j...n-greenhunter/
There are other cases like this, most found in favor of the LLC, but cracks are happening and those who do not do the right things run the risk of loosing what the LLC was design to protect against. Every case makes it easier for the next and most People running their own business usually do not separate personnal from business all that well.