What is the advantage of creating a South Dakota Limited Liability Company?

Similar to the shareholders of a corporation, the owner of a South Dakota Limited Liability Company (LLC) is generally protected from personal liability for LLC debts and claims.

What this means is that if the business itself can't pay a creditor -- such as a lender or a landlord -- the creditor cannot come after the LLC owner's personal house, car, or other possessions.  In other words, the LLC owner stands to lose only the money that he's invested in the LLC. This advantage is known as "limited liability."