Understanding How to Protect Your Personal Assets From Business Creditors
When forming a business, a St. Louis business law office can outline what risks owners face in the event business creditors sue them. Forming the appropriate business structure is key to protecting business owners from personal liability.
When Personal Assets May Be at Risk
In the event things go wrong, it's important to understand what may happen to the business owner's personal assets. Lawsuits are always a risk for business owners whether from breach of contract, defaulting on loan payments or perhaps a personal injury matter. When that happens, owners may be at risk of having their personal assets seized if the company is insolvent or business assets aren't enough to pay the judgment. For this reason, forming the right business structure is key.
A St. Louis Business Law Attorney Discusses Business Structures Aimed at Protecting Personal Assets
To greatly reduce the risk of exposing personal assets to business creditors in the event of a lawsuit, an attorney can explain how to form a corporation or an LLC, or limited liability company. These types of businesses offer protection against the seizure of personal assets that partnerships and sole proprietorships do not. In most cases, liability is limited to business assets in these types of structures. Exceptions apply, but an attorney can help counsel you on your best legal options.
To discuss these issues further, contact an experienced St. Louis business law office. Call the Law Office of Christopher Bent to set up a consultation at 314-551-0898.