Q: Does a single-member LLC protect personal assets if a Client that I am training athletically gets hurt?
I work for an LLC that provides Athletic Training. I have a personal LLC that is under the employment contract with the company. If a person that I was training were to get hurt while I trained them, would I be personally liable or would the personal LLC / company LLC shield me?
A: Assuming hat the LLC was formed in Colorado the answer is that it may not protect you. First, there is issue of professional malpractice - no corporate entity protects a person from malpractice they personally committed. However, your personal subsidiary LLC can protect you form malpractice committed by the parent training LLC. I do not believe that personal trainers are licensed professional in Colorado, so this may not be an issue for you, but it is something to be aware of (esp. if you are a chiropractor - who are licensed). Second, in Colorado single-member LLCs have limited liability protections for owners (esp. if corporate formalities are not followed - no separate bank accounts, no separate business address, etc.). This is not wholly settled law in Colorado, so this may change to allow complete protection (like a corporation). In the alternative, a LLC formed in Wyoming or Delaware undeniably protects against liability (except malpractice - which is never protected).
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