As I have noted in the past, it is not just judges that make the mistake of calling limited liability companies (LLCs), “limited liability corporations.” Today, I got a notice of a Texas case using the later definition. Here’s the excerpt:
The statute defines a “licensed or registered professional” to mean “a licensed architect, licensed professional engineer, registered professional land surveyor, registered landscape architect, or any firm in which such licensed or registered professional practices, including but not limited to a corporation, professional corporation, limited liability corporation, partnership, limited liability partnership, sole proprietorship, joint venture, or any other business entity.” Tex. Civ. Prac. & Rem. Code Ann. § 150.001(1-a) (emphasis added).
You can also be liable for the company’s debts by implied actions or negligent conduct. If you disregard LLC formalities or commingle your personal interests with the company’s assets or interests, you can open the door for an adverse party to “pierce the corporate veil” and render you personally liable for the LLC’s debts. To avoid such consequences, you should never refer to your company as “my” business or “our” business. Such a statement could later be used against you as being a material representation that the business was a proprietorship or a partnership rather than a corporation.