Just because you have an LLC doesn’t mean that you’re automatically protected… You MUST follow the

Here are a few things that you must do when operating your LLC to make sure that you're getting the personal liability protections that the LLC provides. First, you must make sure that your LLC has a separate business bank account, and you must make sure that you don't mix personal expenses with business expenses. Basically, that means you must not use your personal account to pay for business expenses, and you must not use your business account to pay for personal expenses. If you do, then this could trigger the alter ego doctrine and it would remove the liability protections. Second, you'll want to sign business-related documents using the name of the LLC rather than your name personally. Basically, that means that you must let the other party know in writing that the contract you're signing is on behalf of the LLC rather than you personally. Keep in mind, some institutions such as banks will require that you sign a personal guarantee, and in that case, there's really not much you can do about it and you will be personally liable for the contract. And third, you'll want to make sure that you have a strong operating agreement in place for the LLC. An operating agreement is basically a legal document that sets forth the rules of your business, and if you don't have one in place, then the state's LLC Act will automatically apply to your LLC. And for obvious reasons, that's not in your business's best interest. Fourth, you'll want to title business assets such as machinery, cars, and equipment in the name of the LLC so that if anything happens, then then the LLC is at risk rather than you personally. Lastly, you'll want to make sure the LLC stays active by filing the annual reports and paying the fees each year. Forgetting to file the annual report or pay the fees could result in the state administratively dissolving or shutting down your LLC, which could result in you not having any protections at all, or it could result in very expensive late fees to get the LLC back up and running.