When you are starting a business, you may read about setting up a business entity through which you will conduct your business. A big reason for doing so is to protect your personal assets from exposure to potential liabilities and claims involving the business.
You probably will consider starting a limited liability company (LLC) or corporation to house the business. In that regard, there are two main areas of concern for protecting assets – the assets of the owner or owners of the business entity and the assets held within the entity itself.
Have you ever tried to research the ways limited liability companies (LLCs) and the owners (called “members”) are treated when one spouse is the sole member or both spouses are members? This is one of many confusing areas of LLC law that lots of people are unfamiliar with (including, presumably, Al Bundy).
In this article, we try to clear the thicket a bit and provide a better idea of the different options. We also include a couple of handy charts to help out.