When undertaking an act you intend to be an obligation of your corporation or limited liability company [LLC], you must make certain that the person you are dealing or contracting with is aware that the obligation is not yours individually. If you are not attentive and careful, a court could rule that you are personally obligated to pay your company's debts.
Read MoreWhether you are starting a new business or having been operating as a sole proprietor you should consider forming a business entity. This article discusses the legal and practical reasons to formally organize your business in the context of a corporation. Similar principles apply to limited liability companies (LLC).
Read MoreCarelessness and inattention can make you liable personally for a debt of a corporation, limited liability company, or other business entity. You thus be thorough and mindful to create and maintain appropriate internal records of your company, and you must be vigilant with your business’ external documents, such as contracts, loans and other written agreements it enters into with third persons.
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