Protecting Yourself After Incorporation

Did you know that even after setting up an LLC or a corporation that your personal assets could still be unprotected?

In Nellie Akalp's article "Five Ways to Sabotage Your Liability Protection After Incorporation," (full article here: Akalp describes the five most common business faux pas that could make you personally liable.

1. Negligence and Personal Liability

Ex: "If you’re driving to a client meeting in a company car and are negligent and hit someone, you can be personally liable for any injuries and damages."

2. Fraud

Ex: "If you claim that your glass container is BPA-free when actually it does contain BPA."

3. Personal Guarantee on Business Loans

Ex: A bank requires you to sign a "personal guarantee" on a loan for your start-up.

4. “Piercing the Corporate Veil”

Ex: If you show little or no separation between your personal and business finances.

5. Conducting Business Out of State

Ex Your corporation is based in one state and, without filing,  you open a remote office in another state.