Depends. An LLC electing to be treated as an S-Corp for tax purposes can place you in the realm of normalcy as far as your financial life is concerned... You would receive real W2 wages (with payroll deductions!) Additionally, if you are profitable, S-Corp can issue "distributions" which may be partially or even fully tax-free to you... The ability to engineer tax advantages within the S-Corp should not be overlooked! Many on the this board will tell you you it makes no difference, as the taxes are the same, whether you pay them or the entity pays them. That is an inaccurate simplified statement.
That‘s basically true for the owners of the LLC, i.e. the owners are not personally liable for the company's debts or liabilities. However, the person/manager who actually runs the LLC can be held personally liable for his actions.
"can be" Which means it CAN happen (never said it couldnt happen), however that isnt the norm. I wish you people would stop trying to take outliers to appear "smart" and instead understand what is being said.
What happens when your client sued and names both you individually and the LLC on the suit? Who’s paying the lawyer to get your name off the case? Who’s paying to argue that the corporate veil should not be pierced?
I notice your wish. So my wish is that the OP or anyone else who is following this thread does not run into legal trouble, because of a clueless troll who wrote: "You cannot be held personally liable for anything your business does."
Exactly, when the sh##t hits the fan, EVERYONE involved will be sued. Creating an LLC is certainly a great way of managing your risks (and taxes). However certain risks still remain and piercing the corporate veil is only one of them. This will give you some idea: https://info.legalzoom.com/article/can-owner-llc-be-sued-personally I especially like that one: Be Careful When Signing a Contract. If you're signing a contract on behalf of the LLC, you must sign it in your capacity as an owner, director, or whatever title you have. Sign as “Widget LLC by John Doe, Director," or something similar. Before you sign the contract, make sure there's no language in the contract making you personally liable no matter how you sign it. LLC is great when dealing with personal clients and small and maybe even medium companies. Good luck when you are dealing with banks or getting a big corporation as one of your clients. They are certainly more interested in mitigating their own risk than allowing you to play the LLC game...
I also said something else after that. Dont take my words out of context bitch. ANd like the legal zoom article says - there are certain stipulations where it doesnt matter. I addressed this already without stating every single little detail. So like i said, a bunch of morons taking exceptions to mean the rule to appear like they are smart. Fuckin idiot.