Limited Liability Company LLC Questions

An LLC provides liability protection for any and all debts or obligations incurred in the name of the LLC.  If the members personally guarantee any LLC obligation, the entity structure will not protect the members from such obligation.

Also, if the members have not operated the LLC properly (i.e. did not maintain a separate bank account, did not enter contracts in the name of the LLC, did not keep accurate or sufficient company records, etc.), then creditors may have the opportunity to “pierce the veil” of the LLC entity and pursue the members personally for any LLC obligations.   

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In an LLC, the owners of the Limited Liability Company are referred to as “Members” (similar to owners in a corporation being referred to as shareholders).

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The taxing authority for the Limited Liability Company (LLC) has the ability to determine who is responsible for making the tax payments or authorizing tax payments for the LLC — these individuals are referred to as the “responsible persons”.

The “responsible persons” indeed may be personally obligated to pay the LLC’s tax obligations. But not always. 

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