There are many things to consider when you go into business for yourself like the ability to protect your personal assets. One of the most important is that, absent some LLC or corporate protection, you are usually held personally liable for any and all judgments and debts that your business will incur. This includes business loans, balances on invoices due to suppliers/landlords, and any judgments against the business as a result of a lawsuit.
If you don’t take the time before setting up your business to protect yourself, a knowledgeable creditor can easily come after your unprotected personal assets, including your car and your house, investments, to pay for these outstanding debts.
The best protection when you get sued for liability situations is for you to invest in good business liability insurance, but keep in mind that this will not help you with closing out your business debts. If you believe in any way that you may run up large lines of credit, consider forming a corporation or limited liability company (LLC). An individual alone can form either of these types of businesses and do not require any partners. These documents are fairly easy to set up and can be done in a very short amount of time.
Take the time when you are building your business plan to decide what your best options are. If you have been in business for some time and you see that things have changed, we can consult with you on the best way to convert or protect yourself at this time to prepare for future business growth.
As a small business, we at Tindall Law Firm, LLC can relate to the joys and struggles of managing a small business during these changing times. As your neighbor, know that we are here to do all we can to help you and keep our local area thriving.
For more information, schedule a consultation with our office http://tindall.webozy.net/ 203-755-0018. We would love to meet with you and get to know you better and assist you in your business planning.