Legal Question in Business Law in California

Well, your proposition is certainly partly true, but I'd have to point out that it is also partly false. It's kind of like saying "You have to stop at a traffic light" without telling us whether it was red, yellow or green.

A properly organized, capitalized and operated single-person LLC will protect its owner from liability from business debts incurred in the name of the LLC, with perhaps a few exceptions.

An LLC will not protect its owner from misdeeds such as punching a customer in the nose, or embezzlement of either the LLC's or a customer's funds.

If the LLC owner makes errors in the operation of the LLC, such as paying too much for supplies or charging too little for products sold, i.e., ordinary business errors, he would almost always be immune from personal liability. Any lack of immunity would be due to failure to observe the law's minimum requirements for organizing, capitalizing and operating the LLC, which are fairly easily met and, and not for ordinary misjudgment in operating the business.

If you have a particular situation in mind, please feel free to contact me with particulars, and I'll try to give you a more personalized response, no charge.

I agree with Mr. Whipple. If the LLC was set up and run properly, then it should protect the owner from liability for actions he takes within the course and scope of his duties to the LLC.