Asset protection characteristics of LLCs

Description

Abstract: Limited liability companies (LLCs) offer the personal financial protection equivalent to that provided by corporations. This means that members of an LLC generally are not liable for its debts or liabilities. But if the LLC fails to file articles of organization, state law may provide that the conduct of business activity causes the persons acting through the LLC (the LLC members) to lose their liability protection. This article examines the liability and asset protection characteristics of LLCs.