Legal Question in Business Law in Colorado

Re: Personal Judgment and LLC

LLC's and corporations are designed to insulate the individual shareholder/member from personal liability for the debts of the corporation. While normally your personal creditor would not have access to the LLC's bank accounts, how you conduct your business and whether you commingle personal and business bank accounts can result in a creditor's being able to dip into the business account to satisfy a personal judgment. Also, to the extent that you make any profit off of the LLC, that money can be used to satisfy a personal judgment. Finally, to the extent that the LLC is formed to defraud your creditors, the LLC form can be set aside by a court for the benefit of the defrauded creditor. I would definitely suggest you discuss your options with an attorney before getting the LLC up and running.