
An LLC shields your personal assets like your home and car from business lawsuits, unlike a sole proprietorship where everything is at risk. But courts can pierce the veil and go after your personal assets if you don't maintain proper formalities.
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What is an LLC and do they really protect you? An LLC is a limited liability company and the point is to provide you with personal liability protections. This means that if your business gets sued, then your personal assets such as your home, your car, and your jewelry should be protected. The only assets that would be at risk would be the assets that are owned by the LLC. If you have a business and you're running it as a sole proprietorship, then if the business gets sued, then they will be able to go after your personal assets such as your home or your car. Keep in mind there are exceptions to the rule, and sometimes the, the person suing the business could pierce the veil and go after your personal assets. So you'll want to make sure that you're operating your LLC properly so that the veil is not pierced. Thanks, and follow me for more.
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