Attorney Thomas B. Burton discusses the benefits of limited liability protection afforded by an LLC but also explains why you should always include the letters "LLC" on your signs, letterhead, and business cards when conducting business on behalf of your LLC.
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Transcript of Video: Why Should I Include “LLC”on My Signs and Business Cards for My LLC?
Today's question why is it important for
me to include the letters LLC or the
words limited liability company in my
business and on my signage and contracts
when I'm doing business okay this is a
very common question a thing you see out
there if you're driving around town and
you see a small business it's more
likely you've seen a van that says Ted's
painting LLC or a plumbing company Smith
Plumbing LLC and they all put the out
not all but most put the LLC right on
the van right on the side why do they do
this well under the law if you're
operating as an LLC a limited liability
company you're required to inform the
public of the fact in other words you're
saying this is my business and it has
limited liability limited to the
business assets if I as a member of the
public do business with you I'm supposed
to be aware that I am contracting with
your business entity Ted's plumbing LLC
and not with Ted Smith personally for
those services in other words Ted Smith
is not personally guaranteeing his work
if he does a faulty job to my plumbing
system I can sue Ted's plumbing LLC but
I can't go sue Ted Smith personally and
try to take his house for my damages so
if you operate an LLC make sure you are
disclaiming that fact to the public on
your signs your business letterhead your
checks your business cards if you do not
do this and later you try to claim the
privileges of LLC protection but you
were not adequately advertising that you
operate as an LLC the court could choose
to do what we call piercing the veil
piercing the corporate veil saying you
weren't really acting as a business
entity therefore they could allow
someone to sue you and get to your
personal assets so if you form an LLC
it's a great idea for personal liability
protection to separate your business
liability from personal liability but make sure
you're observing those LLC formalities
to keep the protections of the LLC for
your business. Great question and thank
you for asking.
© 2018 Law Office of Thomas B. Burton. All Rights Reserved.
Transcript and captions provided for ease of access for the hearing impaired.
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