Posted on: 11th Oct, 2008 03:28 pm
I was instructed by a lawyer to do a LLC verses INC. He said that my personal interest were better protected.
I was recently told by my accountant that since I work for myself / by myself my personal assets are NOT protected? Is this true - I hope not
Thanks
Faunch
I was recently told by my accountant that since I work for myself / by myself my personal assets are NOT protected? Is this true - I hope not
Thanks
Faunch
Hey Faunch,
I had similar questions when I started my own business as well. While I am no lawyer or accountant, I am not sure how valid my interpretation will be but I will offer what I can. From what I can tell, an LLC and INC have similar protection of personal assets. Basically, in both situations, if someone was to to sue your company, thay can only sue you for the assets of the company. There is a catch in that the primary officers of the company can be held personally accoutable for the financial obligations of the company. I read several websites on the subject and while I got several different answers, this much was pretty consistent. The reason I chose LLC instead of INC was the tax structure.
I had similar questions when I started my own business as well. While I am no lawyer or accountant, I am not sure how valid my interpretation will be but I will offer what I can. From what I can tell, an LLC and INC have similar protection of personal assets. Basically, in both situations, if someone was to to sue your company, thay can only sue you for the assets of the company. There is a catch in that the primary officers of the company can be held personally accoutable for the financial obligations of the company. I read several websites on the subject and while I got several different answers, this much was pretty consistent. The reason I chose LLC instead of INC was the tax structure.
Hi Faunch!
Welcome to Forums!
Yes, Benjamin is right in saying that the both INC and LLC protect the personal assets in a similar way. It is because of the tax structure that people prefer LLC.
Feel free to ask if you have further queries.
Sussane
Welcome to Forums!
Yes, Benjamin is right in saying that the both INC and LLC protect the personal assets in a similar way. It is because of the tax structure that people prefer LLC.
Feel free to ask if you have further queries.
Sussane
