Limiting personal liability


1

I have been working (solo) on a few side web projects for the past several months. My name can be found attached (via WhoIs) to the domains I've purchased and this got me to thinking about worst case scenarios. Should I form an LLC which can own all assets I use in my ventures (and therefore absorb all potential liabilities)?

LLC Venture Personal Liability

asked Feb 23 '13 at 05:23
Blank
Yamori
6 points
Get up to $750K in working capital to finance your business: Clarify Capital Business Loans
  • One might suggest forming separate LLC for each venture, so that liabilities from one won't affect the other. But why don't you ask a lawyer about this? – Littleadv 8 years ago
  • Being a single-member LLC won't necessarily shield you from liability. Why not buy insurance? – User6492 7 years ago

2 Answers


1

I'd go check with an accountant and a lawyer so that they can fully understand your context (e.g. you may want to set up more than one company depending on how you're organised).

I'd also double check your understanding of LLCs since they do not "absorb all potential liabilities" - just a goodly chunk. There are contexts where the directors are still liable. (For example banks will often only take out loans with personal guarantees. You're still liable if you knowingly trade in conditions where the company can't deliver, etc.)

My not-an-accountant-or-a-lawyer answer would be "yes". Having the option to shut things down cleanly and walk away is a very useful one.

answered Feb 24 '13 at 00:23
Blank
Adrian Howard
2,357 points

0

Insurance is the standard answer to this issue. You can get all sorts of liability insurances to cover numerous kinds of risks.

Google is your friend here, so check out these kinds to get an idea what is available:

  • Public Liability
  • Employer's Liability/Workers Compensation
  • Professional Indemnity
  • Directors & Officers
  • Errors & Omissions

There are many options and generally you'd buy what's known as a Package from your insurer, maybe via a broker.

answered Feb 24 '13 at 03:24
Blank
Steve Jones
3,239 points
  • Why did someone downvote this? Makes no sense. – Steve Jones 7 years ago

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

LLC Venture Personal Liability