LLCs are not bulletproof
Just like a bulletproof vest doesn’t keep your head and lower
Your LLC isn’t designed to stop every bullet. Some mistakenly assume that setting up an LLC results in an invisible force field that legal bullets just bounce off of! Well, not exactly. The abbreviation “LLC” is an acronym for “Limited Liability Company”. The name itself, when pronounced in full rather than the shorthand version of LLC, identifies your liability is limited.
An LLC is not diplomatic immunity
In the news, you sometimes hear about a foreigner who comes to the U.S. and commits some horrible crime. The public cries out for punishment, but the perpetrator has some form of immunity status. He gets sent home, but the victims never see justice. Your LLC doesn’t give you a complete pass on responsibility.
LLCs are like a bulletproof vest in some respects
Body armor is made from all different types of materials. Some of these products work better than others. Oklahoma LLCs aren’t all cut from the same fabric or material. For instance, we usually suggest that your LLC should have an operating agreement. The operating agreement is like a type of material that makes up one layer of the LLC. Without the operating agreement, your LLC may not be strong enough to keep the bullet from piercing through to you.
Body armor and bulletproof vests don’t last forever
These things break down over time. Without routine maintenance and operation, your LLC deteriorates along with the protection that you wanted. It’s crucial to perform periodic reviews of your LLC to keep it in tip-top shape. Want to know more about LLC maintenance? [The last sentence is a LINK}
Your LLC won’t stop you from shooting yourself!
If you point your own gun at your leg and fire, guess what? “I’ll be doggone, I just shot myself!” Your LLC isn’t going to offer very much protection or safety from any stupid things you do to yourself. Like, for example, driving the company car after you had too much to drink. If you’re behind the wheel and intoxicated, you’re still responsible for your actions, both in the criminal context of DUI and in civil court for any damages you cause.
You may be wondering, “why set up an LLC anyway if it’s not going to work”? Think of it this way, why does law enforcement wear bulletproof vests? If you’re about to storm into a building with a suspected shooter on the loose, you want all the protection you can get! A bullet in the leg or arm isn’t a good thing, but one to the chest is far more likely to take your life. Although the vest is expensive, it’s worth every penny and more! When a bullet makes a direct hit above the waist and below the neck, the vest may be all that saves you.
In our judgment, having an LLC (or some other suitable entity like a corporation) is your final protection against the legal bullets that are flying around in a legal firefight! You hope none of the bullets hit you at all. But, if a bullet comes your way – – better to have some protection than none at all!
If you want to learn more about Oklahoma LLCs, how to maintain an