12/23/2025
I have more and more people come to my office and tell me they have set up their own LLC and thus their personal assets are safe if they get involved in a lawsuit. They've usually used an online company to help them set it up or just got a "google education" and they believe everything is "safe."
Here's the problem. Google law isn't law school. I've yet to find one of these self-filed companies that actually shield the owner from liability. There is a whole area of law dedicated to "piercing the corporate veil." In this process an attorney tries to show that your LLC is a sham and is actually just you personally using a different name. Sadly, most LLC's are just that. How do you avoid personal liability when your company is attacked in this way?
1. Your company has an operating agreement. I've never seen one in a self-filed LLC.
2. Your company has annual member meetings as set out in your operating agreement. Since you don't have an operating agreement, you obviously aren't having the meetings it requires.
3. Your company secretary keeps minutes of what happens in the annual meeting and other meetings that may take place and they are kept in your records.
4. Your equipment, vehicles, accounts, etc. that are used in the business are in the name of your LLC.
5. The assets you are trying to protect, home, bank and retirement accounts, personal vehicles that are not used in the business are all titled in your own name.
This sounds like a great big company that operates like a large corporation. That's the idea. If it isn't run that way, its just you doing business under a different name and if you get sued, a good lawyer is going to pierce the corporate veil and your personal assets will be subject to attachment for a judgment you thought would only be the liability of your LLC.
Google law doesn't replace a law degree and years of legal experience.