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Why Should I Include "LLC" on My Signs and Business Cards for My LLC?

Attorney Thomas B. Burton discusses the benefits of limited liability protection afforded by an LLC but also explains why you should always include the letters "LLC" on your signs, letterhead, and business cards when conducting business on behalf of your LLC.

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Transcript of Video: Why Should I Include “LLC”on My Signs and Business Cards for My LLC?

Today's question why is it important for

me to include the letters LLC or the

words limited liability company in my

business and on my signage and contracts

when I'm doing business okay this is a

very common question a thing you see out

there if you're driving around town and

you see a small business it's more

likely you've seen a van that says Ted's

painting LLC or a plumbing company Smith

Plumbing LLC and they all put the out

not all but most put the LLC right on

the van right on the side why do they do

this well under the law if you're

operating as an LLC a limited liability

company you're required to inform the

public of the fact in other words you're

saying this is my business and it has

limited liability limited to the

business assets if I as a member of the

public do business with you I'm supposed

to be aware that I am contracting with

your business entity Ted's plumbing LLC

and not with Ted Smith personally for

those services in other words Ted Smith

is not personally guaranteeing his work

if he does a faulty job to my plumbing

system I can sue Ted's plumbing LLC but

I can't go sue Ted Smith personally and

try to take his house for my damages so

if you operate an LLC make sure you are

disclaiming that fact to the public on

your signs your business letterhead your

checks your business cards if you do not

do this and later you try to claim the

privileges of LLC protection but you

were not adequately advertising that you

operate as an LLC the court could choose

to do what we call piercing the veil

piercing the corporate veil saying you

weren't really acting as a business

entity therefore they could allow

someone to sue you and get to your

personal assets so if you form an LLC

it's a great idea for personal liability

protection to separate your business

liability from personal liability but make sure

you're observing those LLC formalities

to keep the protections of the LLC for

your business. Great question and thank

you for asking.

© 2018 Law Office of Thomas B. Burton. All Rights Reserved.

Transcript and captions provided for ease of access for the hearing impaired.

For questions about this topic, or to suggest a topic for a future blog post, please contact my office.

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