On June 24, 2010, the Florida Supreme Court issued a ruling (Olmstead v. FTC) stating that a single-member LLC does not give its owner limited liability. This is a potentially devastating ruling for small businesses in Florida, with ramifications for small businesses throughout the United States.

Solopreneurs routinely use SMLLCs as debtor-protection or home-protection vehicles. Yet in this decision, the state supreme court ruled that a creditor could seize the assets of a SMLLC under Florida state law.

What might happen if they went away? The debate is gaining volume. In July, Treasury Secretary Timothy Geithner said that very few taxpayers would be affected if the landmark tax cuts of 2001 and 2003 expired. “I do not believe it will affect growth,” he calmly commented on ABC’s This Week.1 Many legislators and observers [...]