MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Why Judges Ignore Some LLCs

25 May 2026 · 1 min

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0:42

Mark Kohler explains why courts pierce the liability shield of LLCs and corporations. The real protection comes not from fancy structures but from boring basics: proper formation, good standing with the state, separate bank accounts, accurate records, and annual minutes. Skip these and even a holding company won't protect you.

Chapters

Asset protection starts with maintenance. Most people think asset protection starts with the complicated legal structure, a holding company, a Wyoming or Ohio or New Mexico LLC. None of that works if the basics are ignored. If you have an LLC, a corporation, an S corp, or partnership, a holding company needs to be treated like a real company. That means setting it up properly with all of the right documents, keeping it active with the state, using the right registered agent so your address isn't out there and caution is thrown to the wind, maintaining company records. Creating annual minutes or resolutions, separating business banking from personal banking, having a legitimate operating agreement or bylaws. This is where the lawsuits are won or lost.