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0 pointslonelappde6y ago0 comments

Good luck telling the judge your single person LLC with no investors shouldn't be pierced to pay debts incurred by its only owner and only employee.

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2 comments · 1 top-level

Terretta6y ago· 1 in thread

Works fine if you didn’t co-mingle personal usage of the business accounts.

freehunter6y ago

This VERY heavily depends on your state and I'm sure a lot of other factors. Years ago when I set up my single-member LLC my lawyer was quick to point out a thousand ways the LLC would be useless in court. Mingling bank accounts was only one of them.

The IRS, for what it's worth, treats a single-member LLC as a sole proprietorship and all losses/gains are considered personal income.

As always, check your state laws and consult a real, in-person lawyer.

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