Posted by Rich-CA on January 05, 2008 at 10:29:41:
The case law behind separating a Corp from the owners is well established and the US Constitution declares a Corp to be a separate individual. That makes it more unlikely that a lawsuit will penetrate to the owners. Not impossible, however.
The LLC does not have a constitutional foundation and is reliant on current state laws and court decisions for its protections.
I prefer to keep management in a separate company because I create this company inside the state where it will be operating, whereas all my ownership is through LLCs established in my state of choice. I do maintain “Operating Agreements” between the companies and make sure all documentation is in place as though they were actually owned and operated by different people.