Whenever you are in business with another person or you employ other persons in your business, you expose your personal assets to claims by parties that may be harmed by the actions or omissions of those other people. If not addressed before the liability occurs, the loss could be fatal to your business as well as damaging to your personal assets.
Some steps to take to reduce or avoid these risks include:
- Use a limited liability entity or corporation for your business and properly maintain it.
- Properly identify your business as an entity and that you are acting on its