[thelist] Do I need liablity insurance?

David Kutcher david_kutcher at hotmail.com
Mon Apr 1 18:36:01 CST 2002

I think something needs to be said here about LLC's and the "liability"

Not withstanding PERSONAL liability, the L in LLC refers to and is in
protection of your personal assets for things business related.

If you make and keep a separation between your personal finances and your
business finances (as a lone eagle in an LLC), if your company gets sued,
they can only sue for monies that the company has, not the company AND you.
Meaning that if the monies exceed the financial position of the corporation,
the company declares bankruptcy and this will not affect your personal
finances unless they sue both the company and the officers (which is a
different story).

In biz, always separate your personal finances from your business finances.
Getting incorporated as an LLC or LLP is a strong step in creating that

This is not Liability Protection in the sense of insurance, but liability
protection in the sense of separating the entity known as [insert your name]
from the entity know as [insert your company].

(a LLC)

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