(208) 425-1545 contact@cdaaccounting.com

Yes. A CDA LLC owners usually enjoy limited personal liability for many of their business transactions, but this protection can be diminished. Since the Coeur d’Alene LLC has little rules regulating and formalizing their business behavior, owner(s) can unintendedly be putting themselves at risk.

LLC owners can be held personally liable if:

  • Personally injures someone.
  • Personally guarantees a bank loan or a business debt.
  • Fails to deposit taxes withheld from employees’ wages.
  • intentionally engages in fraud, illegal, or recklessness that causes harm.
  • treats the LLC as an extension of their personal affairs, rather than as a separate legal entity.
  • No functioning operating agreement to govern their behavior.

If owners don’t treat the Coeur d’Alene LLC as a separate business, a court can decide that the LLC doesn’t exist. This would mean that the owners are instead doing business as individuals who are personally liable for their acts.

For Tax Resolution or Tax Preparation services in Coeur d’Alene Idaho click here.