QUESTION
In California, it it worth the added time and expense to form a Single-Member LLC rather than a sole proprietorship?
Asked on Jan 14th, 2018 on Business Law - California
More details to this question:
I'm looking to form a small Escape Room business where people come and participate in puzzle and game activities. I was thinking of forming an LLC for liability reasons, but from what I've read, it seems that its both easy and common for California courts to pierce the veil of LLC protections when it comes to Single-Member LLCs. Are SM LLCs really worth it in California from a legal perspective?
1 ANSWER
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Doland & Fraade
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In 40 years I have only seen the corporate veil pierced once in properly formed and maintained LLC or corporation.
There are tax benefits available in an entity whcih are not available to a sole proprietorship.
Finally, I have no idea what liability could happy by sitting in a room playing games and puzzles.
Answered on Jan 17th, 2018 at 9:59 AM