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Client Sues My LLC: Personal Accounts in Danger?

Are the personal joint accounts that I have with my wife in danger if a client sues my LLC or a former S corporation of which I was a part? My wife has never been on either account.

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Unless a suit is filed against you or your wife personally, those accounts should be protected from legal process in the name of your LLC or the corporation. One thing you should be aware of, however -- if your LLC is a single-member LLC that uses your Social Security number as its taxpayer identification number, it's possible that your bank might mistakenly link together your LLC and personal accounts and consider your personal accounts subject to attachment in the LLC's name. That would legally be an error, but it could happen nonetheless.

Published on BankingQuestions.com 3/27/08