Can I lose my limited liability if I fall into business debt?

Asked 2 years 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 ?

Personal assets Business structure Llc Business debt

Gregg King

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