Thinking of starting a business? A friend told you that an LLC is better than an S Corporation? Do you already have a company in place? Are you protected from liability? Are you sure?
One of the most popular misconceptions we hear from business owners is that by simply being “incorporated,” they feel their personal assets are automatically protected against liability. This is absolutely wrong and can be a devastating misstep for you, your business and, most importantly, your personal assets. Do not blindly follow the advice of an accountant or friend who incorporated his business on Legalzoom. While you may save some money in the short-term, you are exposing yourself to a lot of hurt if you or your company are later sued.
There are several ways for another party to still go after your assets even if you are incorporated. Alleging an “alter ego theory” or “piercing the corporate veil” are just two examples, and all too often, our attorneys have gone after the personal assets of individuals even though their businesses were incorporated. In the end, those individuals received bad advice.
If you own a business or are starting a business, it would benefit you to speak to one of our attorneys for a free consultation not only regarding whether you should incorporate, and under what legal entity, but also what steps you can take to prevent your personal assets from being exposed. The attorneys at Kundani & Chang LLP can help you set up the correct legal entity, and maintain it correctly, so that your personal assets will never be up for grabs. Contact us today to schedule an appointment.