If My Business is Sued, Are My Personal Assets at Risk?
|
If you incorporated your business, you probably did so for exactly this reason- to protect your personal assets from your business' liabilities.
In most circumstances, as long as you have followed the basic formalities of your corporate entity, the person suing your business cannot reach your personal assets. There are some exceptions to this. Certain employment law claims can reach the owner individually, which you should address with your attorney early on as part of the overall assessment of defenses and risk. Sometimes your liability protection can be challenged by a plaintiff who claims that you did not conduct your business separately from your personal affairs, or somehow abused the corporate form. This is called "piercing the corporate veil," and does not applyin most circumstances. Learn more here about what to expect as a defendant in a civil lawsuit. |
Need Help Responding to a Civil Complaint?OR
|
