Do I really Need A LLC? - Limited Liability 'Company'

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Sharpshooter
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Well, got it figured out. With a sole proprietor you just have to fill out a "doing business as" form to register trade name.


Well, yes, but that is just a trade name. It allows you to operate under name of your choice and otherwise protect or associate that brand name with your operation.

It does not establish a corporation that exists separately than the individual proprietor, which is what you want to protect and mitigate your personal assets from any liabilities your business may assume.
 

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Sharpshooter
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BadgerLB nail it i think.Without LLC they can sue you personally.

They can still sue you personally under certain circumstances, if they believe you individually acted negligently or in bad faith separately and beyond your role in the business. Just ask any insurance agent or adjuster who has been named alongside their employer in a lawsuit. A higher profile example would be any civil suits (not the criminal) filed against Madoff for investment fraud. He can be sued separately from his investment management firm.

I will concede that rarely are individuals ever personally found culpable of individual wrongdoing, but it can happen.
 

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They can still sue you personally under certain circumstances, if they believe you individually acted negligently or in bad faith separately and beyond your role in the business. Just ask any insurance agent or adjuster who has been named alongside their employer in a lawsuit. A higher profile example would be any civil suits (not the criminal) filed against Madoff for investment fraud. He can be sued separately from his investment management firm.

I will concede that rarely are individuals ever personally found culpable of individual wrongdoing, but it can happen.
Good point. I guess you can always be sue no matter what paper work have or don't have.
 

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