Does an LLC protect Personal Assets?
Yes, an LLC (limited liability company) is a business structure designed to protect the business owners from being personally liable for the company’s debts or other liabilities.
For example, if your Limited Liability Company declares bankruptcy, owes money or is sued, your personal assets such as your vehicle, personal bank accounts, and house are safe.
An LLC is a business entity that is separate from its owners, like a corporation.
Why people choose an LLC:
- The business owner is not liable for the company’s debts and can choose their own management structure.
- They qualify for pass-through taxation – meaning that profits are only taxed once.