Limiting Business Liabilities

Surprisingly, many sole proprietors never adopt a legal structure that protects them from personal liability. If losing all your personal assets doesn't appeal to you, it's time to add some structure to your life.

Piercing the corporate veil allows creditors to bypass the liability protection that incorporation is intended to provide. Can your corporate veil be pierced?

Can you be sued for something your business partner did? Liability is a major issue in partnerships. Before forming a business partnership, you better make sure you understand your exposure when it comes to business partnership liability concerns.

Don't assume that incorporation automatically shields you from business liabilities. Members of a professional corporation may be surprised to learn that they can still be held personally liable for professional negligence.

Can a key stakeholder of a legal entity with limited liability be held liable for actions undertaken on behalf of the company? It turns out that the courts will often hold individuals personally responsible for personal wrongdoing . . . even when their wrongful actions are done on behalf of the corporation.

Limited Liability Corporation? Many experts say it's no less of an oxymoron than 'jumbo shrimp'. Just because you form an LLC doesn't mean you've limited your personal liability in a bulletproof fashion. If you own or plan to own an LLC, here's what you need to know.

Incorporation limits business liability, but it's not the only way to reduce business liability risks. Even if you are incorporated, there are still some additional steps that are required for minimizing business liability risks.