If I am served with a lawsuit, can I protect my personal assets?
Asked a year ago
Making a decision on which business entity I want is a bit tricky. I want to know more about what a limited liability company (LLC) is since it seems to be the popular choice amongst startups. I’m more interested in the legal structure of an LLC and how it impacts me as a business owner. If I were hit with a lawsuit, would my personal assets be protected from the legal action imposed on the business?
Thursday, September 15, 2022
As long as your personal and business assets are clearly separated, your personal assets would be protected from legal actions imposed on your LLC. There are some instances, though, where your personal assets may be at risk, such as if you fail to pay employees or use business loans for non-business purchases.
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