What protections do LLC’s offer?
The most effective way for business owners to protect their personal assets is for them to file as a corporation or LLC. By filing as a corporation, there is no personal liability for any debts, breaches of contract, or personal injuries that may be caused by the corporation, its employees, or agents. In a limited partnership, there is no personal liability for the debts and obligations of the partnership beyond what that partner has personally contributed to the business.In contrast, in a general partnership, both partners are liable for whatever debts the business, or the other partner, may incur. Additionally, business owners should keep separate business and personal bank accounts and credit cards to help protect their assets.