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--- law:limited-liability [2026/08/10 09:00] – [Limited Liability] Humphrey Boa-Gart
+++ law:limited-liability [2026/08/19 09:08] (current) – [Acquiring Limited Liability] Humphrey Boa-Gart
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 A **Limited Liability Corporation** //(also known as an **LLC**)// is a type of hybrid business entity in the United States //(with rough equivalents in many other countries)// which goes through a formal incorporation process specifically designating it as an LLC. The specifics of this process vary by state, but they usually want information about your company, what it does, where you do it, how to contact a representative of your company in person if ever necessary, and of course some processing fees. The final result is a business entity that is laid-back like a d/b/a, but enjoys some of the same Limited Liability benefits & pseudo-personhood that a full-fledged corporation has.
-{{wst>enola|LIMITED. FUCKING. LIABILITY!}}
+{{wst>enola|LIMITED! FUCKING! LIABILITY!}}
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 The basic LLC is but one type of Limited Liability available for your [[diy:ops|operations]]. There are also many sub-types with different spins on the concept:
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 ===== Acquiring Limited Liability =====
-Limited Liability isn't just a big truck you can throw claims into, but rather a complex series of legal tubes held up by centuries of precedents in English Common Law. You can't just say your company is a Limited Liability Company. You have to **earn it**, by building a documented legal foundation for your Limited Liability claims to stand on, so that lawyers & magistrates can actually make sense of where exactly your LLC intersects with the real world.
+Limited Liability is not a big truck that you just dump claims on, but rather a complex series of legal tubes held up by centuries of precedents in English Common Law. You can't just say your company is a Limited Liability Company. You have to **earn it**, by building a documented legal foundation for your Limited Liability claims to stand on, so that lawyers & magistrates can actually make sense of where exactly your LLC intersects with the real world.
 //For the purposes of this tutorial, we will be creating anonymous LLC's in **New Mexico**, as it is the cheapest & easiest of all states to do this kind of thing from remotely. It costs a mere **fifty dollarydoos** to register your LLC with the state, and this registration is __**good for life with no annual filing requirements**__. However, you may want to consider adapting this guide for **Wyoming**, as they make up for having more expensive & recurring filing fees by having no state income tax. Alternatively: **Why not both?**//
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 ==== Step 8: Protect Ya Neck! ====
-{{wst>expand}}
+Once you have Limited Liability protection, you should immediately start enveloping assets with it. First thing you'll want to do is get a dedicated bank account and debit card for your LLC, as it will make it easier to compartmentalize purchases and writeoffs. While you can still write off LLC expenses made with personal accounts //(as the IRS considers its a "pass through entity")//, sloppy compartmentalization is still a Bad Habit to have as over time it can blur your Limited Liability claims. Using a dedicated company card to purchase dedicated company assets creates a clear picture for any auditor.
+Various types of services online, such as commerce platforms, cloud infrastructure accounts, and domain registrars, oftentimes have a field in account settings for putting your LLC's EIN. This binds the account to the LLC and not your personal name in the records of these companies, again creating a clear boundary for your Limited Liability claims. Make use of these account features when you see them.
+Another thing you should consider immediately, is drafting an [[https://newmexico.avbot.org/operating-agreement/|Operating Agreement]] for your LLC. This is not required to register the LLC in New Mexico and several other states, but having one will make it easier to secure resources, as the Operating Agreement will be the only thing truly proving your Authority to make Official Business Decisions in your "anonymous" LLC. It will also protect you in court, as anything not defined in your Operating Agreement will fall back on default New Mexico laws, which may not be what you want. If this is too daunting for you, you can pay your Registered Agent to make one for you.
+The Operating Agreement is where you can also define all the assets you first transfer into the LLC. Land, vehicles, virtual assets, can all be listed as an appendix table in your Operating Agreement along with everything else, meaning your Operating Agreement doubles as a bill-of-sale that authoritatively extends the Limited Liability protection to those assets.
+If you have multiple LLC's sharing the same asset, you will need to define the relationship of those LLC's to each other, either in the Operating Agreement itself or an addendum of sorts. These sorts of things need to be crystal clear in writing so that Limited Liability boundaries between the LLC's actually hold up in a court setting. Be careful!
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 ===== Limits of Limited Liability =====
-{{wst>expand}}
+{{ :law:7llcs.jpg?250|}}
+It needs to be stressed that //"Limited Liability"// does **not** mean //"No Liability"//. Limited Liability is not a magical [[gear:get-out-of-jail-free-card|"Get Out Of Jail Free" Card]]. It just means there are some protective legal barriers that help facilitate legitimate compartmentalized business operations. These barriers can be exploited for abuse in some cases //(and indeed this is by design to help the elite capitalist class that micromanages our entire society)// but those are advanced tricks for the knowledged legal elite.
+Here I will attempt to document some of the LLC-related shenanigans I have heard about in the wild, what I know about them, and how they usually turn out:
+==== Divorce Settlements ====
+So you're about to go through a nasty divorce, and your soon-to-be-ex is poised to take everything you own. While you can roadblock your ex by moving your personal assets into a Limited Liability Company, it won't stop them entirely as they can just go after //your ownership stake in the LLC as an asset instead//.
+The thing is, your ex has to know about this stake. Putting your assets into an LLC is not a bad start at all, as then you can transfer the LLC as a single easy-to-manage asset into more obscure entities after. If a legal instrument like an [[law:trust|anonymous trust]] owns the LLC, that throws up a substantially more difficult barrier & smokescreen, buying you time to further disperse your assets into the unknown. Just [[tactics:dont-say-anything|keep your damn mouth shut]] about it. Then you can just tell your ex you gambled it all away and lost everything to creditors.
+==== Getting Out Of Tickets ====
+If you have a vehicle owned by an LLC, you as the driver are still legally liable for things like speeding, DUI's & hit-and-run incidents. **You cannot shrug personal criminal misconduct off on your LLC.**
+That said, I have had extensive discussions with friends who have gotten out of parking tickets with company vehicles. One friend told me that they got out of a ticket issued in their name, because the city was not able to prove it was that specific person in the company who illegally parked the vehicle. Another person told me how they got out of a stack of parking tickets by simply transferring the vehicle to a second LLC, which was not legally responsible for the tickets accumulated by the first LLC, and then shutting down the first LLC entirely.
+I suspect tricks like this are going to become harder in the coming years with the advent of AI-assisted ticketing enforcement, which will probably hit full speed when someone inevitably decides **//"I'm Not Paying Your Ticket LLC"//** is a smart idea and triggers a whole legion of angry humorless bureaucrats.:duckhunt:
+==== Suicide Trolling ====
+I know what some of you are thinking right now, and no you cannot get out of criminal/civil liabilities for intimidation, harassment & murder by encapsulating your [[tactics:suicide-trolling|suicide-trolling]] operations inside a Limited Liability Company. Any competent prosecution will be able to untangle what is really going on and bring criminal charges against you anyways. Even if you avoid prison, you just end up like Kiwi Farms, where you're trapped forever promoting degrading psyops for rogue intelligence agencies, the entire internet hates you for it, and low-level federal informants like Neal Rauhauser have made you their personal bitch.
+However, if you are the //**victim**// of a suicide-trolling operation, you definitely will want to consider acquiring Limited Liability protection for your assets, projects & business endeavors. Suicide-trolling ops frequently make use of [[tactics:lawfare|lawfare]], meaning Limited Liability boundaries are more legal gates they will have to specifically pry open in their quest to Destroy You.
+==== Tax Evasion ====
+These aren't Cayman Island shell corporations. You're still going to be dealing with taxes. The IRS is still tracking everything you do via your EIN, which is going to be bound to your social security number if you were the person who filled out the EIN request form.
+However, if you have assets that are taxed higher in some states than others //(like with vehicle registrations)// you can straight up just register them in other states using Registered Agents. I know some people who have done this to get Montana's coveted //"lifetime"// license plates.
+Multi-member LLC's and Limited Partnerships have flexible tax options, so you can choose if you want pass-through style taxation or corporate-style taxation. The various flavors of Limited Partnerships have more minute tax differences that some people can actually make sense of. So you can legally employ these methods to bring down your tax obligations, but you can't Enron your way out of an audit unless you have really good lawyers.
 {{tag>Legal Tutorials}}

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