There are objective sets of rules for LLCs (as well as other entities); they are set forth in state statutes. For example:
A limited liability company is an entity distinct from its members.
All property originally contributed to the limited liability company or subsequently acquired by a limited liability company by purchase or other method is limited liability company property.
As a result, there is an effective shield from personal liability provided that a member acts in good faith, keeps adequate books and records, and treats the LLC as a separate entity. The foregoing, of course, does not imply that you cannot be sued, or otherwise held liable, if you are personally negligent in any aspect of management or in carrying out other duties imposed upon you as a member.
