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Single-Member LLCs – What’s the Deal?

Logo for Avvo, where Dana Shultz answered a question about single-member LLCs

From time to time, I receive question from entrepreneurs about alleged deficiencies in single-member LLCs (limited liability companies).  (As is discussed below, single-member LLCs are different from multi-member LLCs.) This post is adapted from a question about single-member LLCs that I answered on Avvo.

Single-Member LLCs Provide Limited Liability Protection

Q. What is a best way to include a relative-foreigner as LLC member in CA? I formed single-member LLC in CA. Unfortunately I found later that single-member LLCs do not provide usual limited liability protection. (more…)