Vol. I · No. 1 · November 2026

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Entry ix

Business

Hannah Schuster at her desk on a phone call Entry ix · Business
Your LLC is not a force field
Business

Your LLC is not a force field.

Issue
Does forming an LLC protect my personal assets?
Rule
Usually, but a court can disregard the company when its owners treat company money as their own.
Translation
Separate accounts. Separate everything.

The protection is real but conditional. Mixing personal and business funds, ignoring formalities, or using the company to dodge obligations can let a creditor reach the owner personally.

Keep a dedicated business bank account, sign contracts in the company's name, and keep a signed operating agreement on file. A New York LLC also has a publication requirement within 120 days of formation, and skipping it can suspend the company's authority to do business.

One more thing: a personal guarantee, which many landlords and lenders ask for, makes you personally liable no matter how the company is set up.

More from the Journal

In this issue
  1. i.Equitable doesn't mean equal
  2. ii.Mediation is not the soft option
  3. iii.Text like the judge is reading
  4. iv.The prenup for your business partner
  5. v.What to bring to your first consult
  6. vi.Child support runs on a formula
  7. vii.Two doors to an order of protection
  8. viii.The prenup talk, minus the drama
  9. x.Read the non-compete first
  10. xi.Buying a business: assets or the company?
  11. xii.Selling your business? Get diligence-ready
  12. xiii.Buying a home in New York
  13. xiv.Open permits can hold up a closing
  14. xv.Bankruptcy basics: Chapter 7 vs. 13

← Back to That Lawyer Hannah · Schuster Law

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Questions about your divorce, your custody schedule, or your next deal? Reach Hannah at Schuster Law.

Email
hannah@schusteresq.com
Phone
(516) 259-2073
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Office
499 Chestnut St Ste 104
Cedarhurst, NY 11516