LLC and personal liability

I want to start a small business making a widget a handgun fits into. It's a solid design using solid materials that I personally make. Since it directly deals with firearms I'm concerned about liability and thus form an LLC.

Despite my quality design, somehow a person shoots their self and blames my widget. They sue my Company LLC for damages and because of their stupidity and lack of willingness to accept Darwin for what he is.

Can they also get to my personal assets?

Thanks

The short answer is yes.

I had an LLC for 10 years and my accountant informed me there were no guarantees of isolation of liability.

While an LLC is supposed to isolate liability, the court history does not support that.

The officers of a company have been held personally responsible for negligence of their decisions.

It does vary from state to state though and an LLC is not federally recognized as anything other than a partnership.

Even officers of an Inc have been held personally responsible.

Having said that, I think it's pretty rare and I think the court must show willful negligence.

But I am not an attorney, an attorney specializing in that area would be able to give you better info.

I certainly don't know the state law of Indiana, but in Colorado its pretty easy to get past an LLC at a director. Just make sure you've got good insurance.

Some of the above answers exaggerate the ease of getting behind an LLC to a member's personal assets. However, it can be done and among the elements that aid in allowing a plaintiff to reach a member's personal assets is inadequate capitalization.

The best answer is indeed product liability insurance. It is not inexpensive and so you'll want to include its costs in your business plan.

I'm relying on Hoang v. Arbess, which stated "While an officer of a corporation cannot be held personally liable for a corporation's tort solely by reason of his or her official capacity, an officer may be held personally liable for his or her individual acts of negligence even though committed on behalf of the corporation, which is also held liable. * * * * Moreover, that a defendant is at all times acting on behalf of the corporation does not relieve the defendant of liability. * * * * And the corporate veil need not be pierced where a tort action is brought against an officer or director and the elements of the tort are proved."

The decision was equally applicable to directors of LLCs

I've been checking into liability insurance but have been told no thank you several times because of the nature of my widget. Anyone know of gun friendly business insurance agencies?

Thanks

It will not be hard to get past any kind of corporate structure since you are a 'hands on' business and your actions will be the issue.

Just like doctors, engineers, tradesmen, etc. there is not a lot of protection if someone says you personally are responsible.

Buy insurance.

www.guninsurance.com

Thanks. I sent them a message.

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