Can I lose my limited liability if I fall into business debt?
Asked a year ago
The LLC business structure is one of its best qualities, and that’s why I have already decided that I might pick it for my business. I still have one concern about it though. If it were to happen that there was business-related debt, I know that my home, car, and other personal assets would be protected. However, in this case, would business debt result in me losing my limited liability ?
Wednesday, September 14, 2022
It is possible that you could lose your limited liability in some cases. Some examples of when your limited liability is at risk include:
- Using the funds acquired through a creditor for non-business purchases
- Failure to pay employees
- Comingling personal and business assets
- Signing contracts in only your name, without reference to your business
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