How may a one-person limited liability company shareholder avoid joint and several liability?
A shareholder of a one-person limited liability company faces a heightened risk of bearing joint and several liability for the company’s debts. The key to prevention lies in strictly separating personal property from corporate property, maintaining standardized accounting with annual audits, and avoiding any commingling of personal and corporate accounts, so as to demonstrate that the shareholder’s property is independent of the company’s property.
