A company that will 100% protect me?

[manlymatt83]

Three of my friends and I (four total) have decided to form an LLC. I have very good personal credit, the rest of the guys have either no credit or bad credit from their other adventures. I have been told by my friend's dad who is a lawyer that the LLC split 4 ways (25% shareholder per person) will protect us from invasion of personal assetts, as well as from each other's personal finances (My friend's bad credit won't interfere with my good credit). He says the only way my personal credit could ever be affected is if I guarantee a business loan with my personal credit. Is this true? Am I OK in this LLC provided I never sign something saying I'm personally backing a loan, agreement, etc.? I think we have enough funding from individuals that we won't need to borrow money for a very long time.... the start up is a pretty simple operation and we can really start with no money....

 

[George P Burdell]

Did this lawyer the father of one of your business partners?

 

[kranky]

Look, that's a question that you need a lawyer to answer. The stakes are pretty high to be wrong, wouldn't you say?

 

[dug777]

see a lawyer you fool 😉

 

[Acanthus]

Definately see a lawyer, this isnt something i would let AT even comment on.

 

[RKS]

LLC is the new way of incorporating. While it may be a great way of setting up shop it does not guarantee lack of personal liability.

If you act for the LLC within its 'line of business' you should be okay and the courts are very liberal under the 'business judgement rule' in giving business related ventures plenty of leway in determining what is good for/in the name of the corp.

As suggested have an attorney file/setup your LLC in your state.

 

[dman]

Good luck getting credit for a new business without backing it up somehow personally.