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Situation

I understand that an LLC acts as a legal barrier to protect your personal assets (savings, home, car, etc...) if you were taken to court on a judgment, all of those items unless extreme occasion are untouchable.

Now let's say that me the person gets sued (car accident for example) and insurance has done everything they can but now ambulance chasers managed to come after me. If I was to have all my savings in the LLC, prior to the accident of course, the question is:

Question

  1. Would that money be untouchable since it's inside the LLC?
  2. Or in other words, can you protect yourself by putting your assets inside the LLC?

Thanks

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How is this related to startups? The answer, by the way, is yes, it may work, but it's only worth it if you have a net worth in the $100M+. – Alain Raynaud May 10 '12 at 21:32
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There are tax implications to simply giving the LLC money to "hold". Otherwise if the money is in the form of a loan or in exchange for membership interest, then those funds are still accessible through the lawsuit against you as a person. – Henry the Hengineer May 10 '12 at 22:05
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only worth it if I have a 100 million why? What if i have $40K and I worried about loosing them if my insurance company isnt able to settle it? The company would not be formed with that intent only, but to try to make money but at the same time try to epxloit all possible advantages, so yea it's related to startup. – Viriato May 11 '12 at 1:07
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Maybe it's possible the powers that be would re-open your question if you rewrote it to include the idea that you are starting an LLC for your startup? The way it's written it mostly sounds like you are just forming an LLC to prevent litigants collecting if you accidentally rear-end someone on the highway and injure them. (in which an LLC wouldn't protect your assets, of course). And I'd guess this protection information is already covered on another LLC question on this site. – Chelonian May 11 '12 at 15:42

closed as off topic by Alain Raynaud May 10 '12 at 21:39

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