Is it true that if an LLC gets in legal trouble, the worst thing that can happen to the founder is the company goes bankrupt?

The short answer is no, an LLC is not designed to totally protect the founder from absolutely everything other than bankruptcy. However, an LLC DOES help protect against personal liability in the event that the business is sued for various reasons. Essentially, your personal assets are protected, but the assets of the company are not. There are many legal issues that can arise that will make your LLC liable in litigation that could scar the reputation of the business, such as negligence cases.

If you are interested in establishing an LLC or would like assistance understanding laws associated with this type of business, please contact LawTrades. Our legal marketplace was made for startups and entrepreneurs looking for an alternative to law firms and LegalZoom. We offer great attorneys at an affordable rate. On top of that, our legal services are hassle-free. We hope to help you soon!