Agreed, it's a good thing the article is not legal advice because it's got so many basic errors that it would constitute actionable legal malpractice.
To clarify: an LLC means a "limited liability company" so the owners have limited liability. Their loss is limited to their investment. If the corporation's debts/losses exceed their investment, they don't have to pay those debts/losses out of pocket. The exception is the "piercing the veil" doctrine, which applies where the LLC is not being run as a separate business entity, i.e., it is financially or legally not treated as an independent entity by its investors, i.e., because they never have organizational meetings or they do not maintain separate bank accounts for the LLC. This risk is greatest with single-person LLCs, but can happen with any LLC.
>Agreed, it's a good thing the article is not legal advice because it's got so many basic errors that it would constitute actionable legal malpractice.
I would have simply said read the reply to the post above, but your so out of line that it needs to be addressed. Your copy/paste "analysis" only examines liability of the single member Owner for the LLC liabilities. What about the company being liable for the owner's liabilities? If you are a single member owner and have personal debts/judgments, the debtors/judgment holders can not only take economic interest in your business but actual equity (ownership).
"it's got so many basic errors that it would constitute actionable legal malpractice." First, you clearly do not know the elements of legal malpractice. Second, if you actually read my post, I made it clear a single member Owner is protected from LLC liabilities.
Any thing else you think is an error?
The Florida Supreme Court recently issued the Olmstead v. Federal Trade Commission case. The case's holding is that F.S. 608.433 (4) allows a court to order a debtor to surrender "all right, title, and interest" in the debtor's single-member LLC to satisfy an outstanding judgment, unlike many other states where the sole remedy is a charging order.
To clarify: an LLC means a "limited liability company" so the owners have limited liability. Their loss is limited to their investment. If the corporation's debts/losses exceed their investment, they don't have to pay those debts/losses out of pocket. The exception is the "piercing the veil" doctrine, which applies where the LLC is not being run as a separate business entity, i.e., it is financially or legally not treated as an independent entity by its investors, i.e., because they never have organizational meetings or they do not maintain separate bank accounts for the LLC. This risk is greatest with single-person LLCs, but can happen with any LLC.