Do you have personal liability with an LLC?

Generally, the members and managers of a limited liability company have no personal liability for the obligations incurred by the LLC. For example, if the LLC buys goods or services on credit and goes out of business, the members are not obligated to pay the creditors.

There are many many ways, however, that personal liability can arise out of a person's participation in an LLC. Some of these include:

* The person's own negligence, fraud or illegal act

* Personal guarantees

* "Piercing the veil" of the LLC