When some of us registered our LLCs, we felt instant relief.

“Great! All of my personals are officially safe if anything goes wrong in business.”

And then reality comes in like a wrecking ball to tell us that’s not necessarily the case.

An LLC is like a bullet proof vest.

It is very effective until you take it off without realizing it, and you will realize the vest is off when a judge decides your LLC will not protect your assets.

Your corporate veil will have been pierced!!!

Stripping yourself from your protections is as simple as this:

Let’s say, there’s a woman named Penelope, and she has a successful business with clients steady coming in and revenue flowing. She decides to go into contract with a software company.

Six months down the line, there is a dispute between her and who she is contracted with and that company decides to sue her. They are not just suing the business; they are suing her personally!!!!

Do you know how they were able to do that?

When she signed that contract, she only signed her first and last name.

She left her company name and title off of the signature, which legally binds her to the debt as an individual.

They say the pen is mightier than the sword. In this case, it’s what didn’t happen with the pen that does the most damage.

If you have an LLC and keep an eye on these five aspects, I think you will be alright.

1.) Avoid using a business card for personal expenses or paying a business vendor with your personal money. I know I mention this a lot. I will never stop.

2.) No more naked signatures like Miss Penelope’s mistake. If you are signing contracts, leases, or client agreements with just your name, and no company name and title, (CEO, Managing Member, Founder) then you are signing as a private individual.

3.) Don’t neglect to read the fine print on those commercial leases, business credit cards, and bank loans. A lot of people don’t like using personal credit to get loans and some of those same people don’t realize that they just signed away their assets should they default on payment. That fine print is something else.

4.) Personal negligence. The business won’t save you. Some people think that if they commit fraud or cause damage that they won’t be held personally liable. That is a totally erroneous outlook.

5.) There has to be a document showing how your business operates. The Operating Agreement is your business’s governing framework, and without that, a judge can hold you personally liable because there hasn’t been a clear separation of your business as a legal entity.

So, remember:

Watch how you sign those documents!!

No more First and Last name only.

Jane Smith ❌

Jane Smith, CEO of Such and Such Company LLC ✅

And think about your personal assets when you swipe that business card at the grocery store.

Quote of the day

“At your very best, you still won’t be good enough for the wrong person. But at your absolute worst, you’ll still be worth it to the right person.”

~Tom Hardy

The people that are for us, show us, and they are there for us throughout. The people that are not for us show it too, and we feel it, yet sometimes for whatever reason there is a need to try to prove to them that they should feel otherwise about us. I believe the key is to not do the most or get all bent out of shape for someone who wouldn’t even tell you that there is something stuck in your tooth and then watches you as you smile at everybody in the room. Everyone is not for us, and that is ok. And the people who are will be some of our GREATEST personal assets.

Thank you.

Have a fantastic week. I appreciate you very much!

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