Legal Question in Business Law in New Jersey

Re: Personal liabilty?

As the other attorneys have already told you, in most instances and for most types of liabilities, you are not personally liable. Taxes, your own negligence and several other types of liability will continue to be your personal liability.

Setting up an LLC is fairly simple. You should also confer with your accountant when setting up a business. I am in northern NJ. Please contact me if I can assist you, at 973-890-0400.

Re: Personal liabilty?

As with the other replies, I am confirming that you can insulate from most liability excluding taxes and your own negligence.

You did not mention your business type but I usually advise that the initial business plan be reviewed by an accountant and an insurance agent who can be helpful in avoiding personal liability. Of course, it goes without saying that the entity must not be used for fraudulent or personal purposes both of which can open the door to personal liability.

Our firm is located in Roseland, New Jersey and provides a multitude of legal services including advice to new enterprises.

Re: Personal liabilty?

If you form and maintain a limited liability company properly, business creditors may not pursue your personal assets. To ensure strict adherence to the formation requirements, tax elections, and capitalization requirements, I suggest you contact an attorney for assistance.

You may contact my office for a consultation at [email protected] or at 212-401-2990.

Good luck,

Anthony S. Park

Re: Personal liabilty?

Generally yes, if the LLC is set up correctly and you follow certain rules in your operation of the business. An attorney experienced in this area of the law can give you guidance as to the do's and don't's that will preserve your shield from liability. You are also obviously not protected if you personally guarantee an obligation of the LLC, a fairly common requirement of lenders, etc. for new businesses. Make sure you always sign documents as a "member" or the "manager" (if that's when you officially are) of the LLC and not simply in your own name.

The big exception many people forget about is that an LLC never protects you from your own acts. If you are driving a car, even while on LLC business, and you cause and accident, you are still personally responsible for your own negligence and the LLC may be too. However, the LLC would protect you from personal liability from other member's acts in the example I have given.

Good luck to you in your new busines.