[NC] Can a single-member LLC provide liability protection?

Lexi, Chatbot

I understand your concern. Are you looking to transfer the copyright ownership to the LLC for liability protection purposes?

Lexi, Chatbot

Have you already consulted with a lawyer regarding the formation of the LLC and the transfer of copyright ownership?

Lexi, Chatbot

Is there anything else the lawyer should know before I connect you?

Blake

Hello, my name is Blake, and I am a licensed attorney — I will be happy to help you today! First, how long ago did this happen, and where was it located?

Blake

What you’re trying to do is very common among content creators and business owners. To answer your core question:

No — the LLC does not need to be multi-member to provide liability protection for copyright ownership. A single-member LLC (SMLLC) in North Carolina still functions as a separate legal entity and can hold and manage copyright assets with limited liability protection (N.C. Gen. Stat. § 57D-2-01). A few important caveats and best practices:

Single-Member LLCs and liability protection

• Courts may be more willing to “pierce the corporate veil” if you don’t clearly separate personal and business affairs. To minimize that risk:
  • Maintain a separate business bank account.
  • Sign contracts and IP assignments in the LLC’s name.
  • Keep clean accounting records and minutes, even if informal.

Transferring copyright ownership

• Use a written copyright assignment agreement.
• The assignment must be signed by the current copyright owner (you) and clearly describe the work(s) being transferred.
• After transfer, record the assignment with the U.S. Copyright Office using Form CA. Recording isn’t required but provides public notice and can strengthen enforcement in court.

Use of a trust and trust bank account

• You can add a trust for added protection/privacy/estate planning:
  • Have a trust own the LLC, or have the trust be the LLC’s member from formation.
  • Simply using a “trust bank account” without legally forming and funding a trust and assigning ownership won’t provide meaningful protection.

Tax and estate planning considerations

• Consider IRS classification (disregarded entity vs. partnership vs. S corp).
• Make sure transfers between individuals, LLCs, and trusts are documented in writing.
•  

I recommend speaking with a local attorney or CPA experienced in intellectual property and business formation to ensure everything is done correctly under North Carolina law.

Blake

Yes — you may absolutely copy and use the information provided here for your personal reference and planning purposes. I’m glad it helped. Just remember this is general guidance; for specific legal drafting and to make sure your LLC/trust structure meets your goals and complies with federal and North Carolina law, have a local attorney review it.