Never Loan to an LLC Without These 3 Things #LLC #Tax

If you're going to loan someone $10 million, you loan and get a personal guarantee from the bozos you're loaning to. You just don't loan to an LLC. So a note to any of you out there loaning to your brother-in-law or whoever, make sure when you sign these notes you're getting more of a guarantee than some LLC. 3 things went wrong. The first one was the company, the LLC, they didn't keep books at all or records. They had terrible bookkeeping. Number 2, They did not observe any corporate formalities. And third, they used it like their own piggy bank. They were just like money in, money out. There was no accountability. And in the end, the judge said this looked just like a scheme or a fraud. Like you just used the LLC to take advantage of this plaintiff. Those 3 key points were the building blocks that a lawyer would use to pierce the veil. 'Cause they got to say to the judge, judge, look, you got to be on our side, judge. These guys were ripping people off.