Legal Question in Construction Law in Texas
LLC protection
We have a residential home remodeling business and are being sued both as a company (LLC) and personally. Supposedly - the personal suit is due to negligance. Can this be correct?
1 Answer from Attorneys
Re: LLC protection
Generally, business owners choose an entity structure based on how it will be taxed and the extent to which the entity will shield the owners of the business from liabilities arising out of business activities. An LLC provides limited liability protection for its members. However, if the members of an LLC are not observing "corporate" formalities (i.e. treating the LLC as simply a shell company), then the members may potentially be personally liable depending on the facts and circumstances surrounding the claim.
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