Limited liability is the fourth, final element covered in my series on the four possible elements of an LLC, and it is the most important.  After all, what would a limited liability company be without it?

More information is available in my video at the right and on my blog at http://www.llcwizard.com/limited-liability, but you should know that limited liability gives you the same protection as a corporate shield--IF AND ONLY IF you follow the needed formalities to show that your company is a separate entity from yourself.

You see, the government granted limited liability to encourage people to start businesses by limiting their exposure to liabilities incurred by the company.  But you only get the liability protection if you actually treat the company as a company, not your alter ego.  Disregard the formalities at your own risk.