Business Legal Insight Newsletter  – Structuring Your LLC Properly 

Is Your LLC Actually Protecting You? 

Forming an LLC is only the first step. Real protection depends on how you operate your business daily. Courts may disregard an LLC if formalities are not followed, exposing personal assets. 

Common Mistakes 

  • Mixing personal and business funds
    • Paying personal expenses from business accounts
    • No operating agreement
    • Signing contracts personally 

Best Practices 

  • Maintain separate bank accounts
    • Use an Operating Agreement
    • Document key decisions
    • Sign contracts in the LLC name 

Real-World Risk 

If an LLC is treated as an ‘alter ego,’ courts may allow creditors to pursue the owner’s personal assets. 

Legal Tip 

Review your last three contracts. If signed individually, you may have assumed personal liability. 

Contact 

Schedule a consultation to assess your risk. 

Law Offices of Bellenot & Boufford LLC
www.bbesq.com
Law@BBesq.com