Earlier this month, as part of the FTC’s ongoing efforts to protect consumers in financial distress, the Federal Trade Commission announced a settlement in a scheme that allegedly defrauded consumers out of more than $100 million by falsely claiming they could reduce their tax debts. This is the agency’s first action against a tax relief company and a good example of the consequences for those who may consider using a Limited Liability Corporation, or LLC, as an extension of its shareholders, in order to shield personal assets, advance their private interests or to perpetrate a fraud.
FTC says a Corporation or LLC is No Shield for Fraud
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