I'm not a lawyer so my words are just my thoughts, not legal advice. That said ...
It is my understanding that the "Limited Liability" that a corporation provides is based upon the concept of "piercing the corporate veil". Can the customer who sues your company, pierce the corporate veil and get to you personally? In general, if you are the corporation, ie you are the only employee, and you made all the decisions, and if you mess up big time, and someone wants to sue you personally, it is going to be difficult for you to claim that you should personally be protected just because you are an LLC. If you have employees and they do most or all of the work and you manage them, and they mess up, if you are a sole proprietor, the customer can sue you personally. But if you have employees who messed up and you are a corporation, then you personally are way better protected because there is not a direct line from screwup to you personally through all the employees who might have contributed to the issue. The corporation can lose a lawsuit and the company can disappear but they would have difficulty piercing the corporate veil to go after your personal property. In a nutshell, if it is just you, the protection you get by being an LLC is probably very close to nil. And again, I'm not a lawyer so ask someone who really knows. Kee Nethery
