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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?

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If my business is sued, are my personal assets at risk?

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  • Home
  • Estate Planning
    • Massachusetts Wills and Trusts
    • Why You Need an Estate Plan
    • Massachusetts Estate Tax
    • Inheritance Tax
    • How to Make an Estate Plan
  • Employment Law Solutions
    • Employment Law MA
    • Employment Termination
    • Sexual Harassment at Work >
      • Sexual Harassment in a Small Business
      • Sexual Harassment and Non Disclosure Agreements
      • Sexual Harassment and Remote Work
    • Wage and Hour Laws
    • Independent Contractor Law
    • Non Compete Agreements >
      • Are non competes enforceable
      • Massachusetts Non Compete Act
      • Pre 2018 Massachusetts Non Competes
    • Equal Pay Act
  • Business Law Solutions
    • Small Business Law
    • Business Contract Basics
    • Civil Suit Defense
    • Legal Issues for Start Ups
    • Trademark Basics
    • How to Incorporate
    • Sale of Business
  • Attorneys
    • Emily Smith-Lee >
      • 2018 Lawyer of the Year
    • Jenna Ordway
    • Rebecca Rogers
    • Stowell Simonton
    • Elijah Bresley
  • Reviews
  • Blog
  • Contact