Understanding Liability Protection for Your Business in Florida

1. Florida statutory law protects LLC members and managers from personal liability for the obligations of the LLC.
2. Even if an LLC dissolves or fails to observe normal formalities, managers and members are not personally liable for the company’s debts or liabilities.
3. Limited liability is one of the main reasons for forming an LLC, and it provides significant protection from personal liability for individual managers or members. – Personal liability for LLC managers and members can be imposed under Florida statutory law if they breach their management duties in specific ways such as violating criminal law, deriving improper personal benefit from a transaction, making an improper distribution, or acting with conscious disregard of the LLC’s best interest or willful misconduct.
– LLC managers and members can also be held personally liable for fraudulent transfers made with intent to hinder, delay, or defraud creditors, or without receiving reasonably equivalent value in exchange.
– Additional statutory grounds for personal liability may exist, such as making a written obligation to make future contributions to the LLC or owing tax payments. – Personal liability can be imposed on LLC managers and members under Florida common law if they commit tortious conduct individually.
– Managers and members can also be held personally liable if the corporate veil is pierced, showing that the LLC is the alter ego of the manager(s) or member(s) and that they engaged in improper conduct.
– The terms of the LLC operating agreement and any additional individual fiduciary duties or exceptions can also impact personal liability for managers and members. 1. Personal liability protections for members and managers of an LLC are not guaranteed.
2. It is important for managers and members to be aware of their individual risks.
3. Informed decisions regarding personal liability risks are essential for managers and members of an LLC.

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