Most companies choose to form a legal entity – whether a limited liability company, corporation, or otherwise – for the avoidance of personal liability to the shareholders or members. In other words, the personal assets of the company’s owner – including homes, cars, savings, and possessions – are not at risk for actions taken by the company [...]
Posts Tagged ‘corporate veil’What You Need To Know About Starting A Small Business – Part 4: What is a Corporate Veil and How Can I Keep It From Being Pierced?Monday, April 19th, 2010What You Need To Know About Starting A Small Business – Part 1: Why should I form a legal entity at all?Tuesday, April 13th, 2010There are many reasons business owners choose to form a legal entity – whether a limited liability company, corporation, or otherwise. First and foremost, forming a legal entity reduces personal liability. Second, forming a legal entity adds credibility to the business. Third, forming a legal entity allows the building of business credit. First, and most [...] |