Legal Question in Business Law in Massachusetts

Re: LLC and protection against personal assets

In general, protection derived from a corporate form (e.g., corporation, llc) is mainly protection against contract-type claims. As long as appropriate formalities are observed, the entity should provide reasonable protection. As far as tort claims go (e.g. personal injury claims), the entity provides less or no protection, but insurance is the typical way of obtaining protection against tort claims (and one of the more important insurance benefits is the duty of the insurance company to defend its insureds, by engaging an attorney to defend them when litigation is started against them).

Unfortunately, people sometimes don't bother to find out what steps they should take to make sure the protection they seek will be there when they need it.

If you are concerned, you really should speak with an attorney to confirm you are taking appropriate steps to benefit from your choice of a llc.

Re: LLC and protection against personal assets

A LLC or Corporation are protections against contract claims, but not things such as malpractice or tort claims arising out of your personal misconduct, such as an automobile accident where you are driving, even if it is a company vehicle. It is important that you keep records and follow the rules regarding the LLC.