When looking at the lists of LLC pros and cons, you’ll find the limited liability feature among both the advantages and disadvantages of a limited liability company. The answer to why that happens is relatively simple.
While the LLC does offer limited liability that protects its members’ personal assets such as bank accounts, investments, heirlooms, homes, and vehicles from creditors seeking to collect from the business, that liability has its limits. If you run the business fraudulently, you won’t be protected.