Re: LLC vs S Corp
Posted by John on October 22, 2000 at 08:23:49:
In Reply to: LLC vs S Corp posted by david on October 21, 2000 at 09:32:10:
The short answers are: No, No and No. Take a look at the back issue articles in the Crafts Report, or go to About.com's Art/Craft Business website, which can be found under Helpful Links, which is in the Features section.
If you don't have money for a lawyer to answer these questions, you aren't going to be able to set yourself up as an LLC or an S corp anyway.
Everyone wants to protect their personal assets from business related problems. Problem is: you and the biz are one and the same. If someone is going to sue the biz, his lawyer is smart enough to sue you, too. If you go down to the bank for a loan, your banker is going to make you sign a personal guarantee, too. If your "biz" doesn't pay taxes on time, the IRS is going to come after you, too. All of this is called "piercing the corporate veil" and is used to get around the structure of business ownership and to the responsible parties in legal issues involving closely-held businesses.
Sorry, but in the USA you are responsible for your actions -- unless you have a ton of money to hire enough lawyers to hide behind. That's a different, but costly, game to play.