Discussion regarding LLC Registration

I have been registered as a DBA for a couple of years, and am making the move to register as an LLC. One thing I read is that there are some scenarios where the LLC registration will not limit the liability of the it's members. Some obvious ones are defamation, and general unlawful action against the opposing party.

Does anyone have any specific examples in our field (wedding photography and otherwise) that would fall past the LLC and land the liabilities on the member(s) of the corp?

css7493 wrote in post #10927312
I have been registered as a DBA for a couple of years, and am making the move to register as an LLC. One thing I read is that there are some scenarios where the LLC registration will not limit the liability of the it's members. Some obvious ones are defamation, and general unlawful action against the opposing party.

Does anyone have any specific examples in our field (wedding photography and otherwise) that would fall past the LLC and land the liabilities on the member(s) of the corp?

You would really need information specific to your state--preferrably from a lawyer. The laws on LLCs are utterly state-driven, and any resulting case law within each will vary enormously.

Yeah, it's all state driven. Regardless, I did an LLC for a few reasons, it was very cheap, it was very easy, and though it may not provide lock-tight protection under every circumstance it offers an awful lot given what's required to set one up.

That is all stuff that I had guessed. My wife's uncle is a J.P., he actually married us, I will see if he knows anything more specific.

I'm not a lawyer, but,

To my understanding the most normal "pierce the veil" scenario is around the assets of the corp. Let's say you take on a large project that very clearly should be covered by liability insurance. Let's say you don't have liability insurance and something goes wrong. Standing up in court and stating "I had no liability insurance, but I do have an LLC which is worth $1.25, and you may have it" is going to get your LLC tossed in the trash and you personally would be added as the defendant in the case. In other words, your corp must have reasonable ability to sustain the claim.

Again, I'm not a lawyer.

Dave

Likewise, I'm not a lawyer, but I'd state it slightly differently. An LLC will help to shelter your assets UNLESS you were negligent. Not having sufficient insurance (along with a bunch of other things) could be regarded as negligent.

You've said it much better than I... probably one reason I'm not a lawyer!

Dave

That was exactly what I understood but could not figure out how to articulate myself. Negligence: an LLC will not protect you against stupidity, carelessness, and all the like. However if I upheld my end of a written agreement but a client were to claim otherwise, they win, however I am held only to what my company is worth.

Like tracknut . . . I am in no way shape or form a lawyer.

css7493 wrote in post #10929367
That was exactly what I understood but could not figure out how to articulate myself. Negligence: an LLC will not protect you against stupidity, carelessness, and all the like. However if I upheld my end of a written agreement but a client were to claim otherwise, they win, however I am held only to what my company is worth.

Like tracknut . . . I am in no way shape or form a lawyer.

One of the reasons you have to check this out with a lawyer in your own state is because states differ greatly in how aggressively they rule on such things. In one state, it might be hardly an issue, in another they hang you out to dry. My state is so litigation happy that it's the #1 choice of venue for interstate class action suits.

css7493 wrote in post #10929367
Like tracknut . . . I am in no way shape or form a lawyer.

I always like to remind people; I am not a lawyer. I'm a photographer . . . I take pictures.