2 ms·
Piercing the corporate veil is a thing, though. I don’t know the details as I’m neither a lawyer nor a company owner, but my understanding is that you have to
by kd5bjo 7y ago
Piercing the corporate veil is a thing, though. I don’t know the details as I’m neither a lawyer nor a company owner, but my understanding is that you have to keep your and your company’s assets and activities completely separate, which requires a level of discipline that many people don’t have.
Similarly, as a single-person company, any action that could cause liability was presumably performed by you, personally. That makes it much easier for a litigant to sue you personally instead of/in addition to your company.
- WillPostForFood 7y agoAbsolutely true, and it is true regardless of whether you use an LLC, S, or C Corp.
- kd5bjo 7y agoIf none of the more complicated strucures will provide the liability protection that you're going to need, there's also the possibility of doing business as a sole proprietor/DBA. You get no protections at all, but the reporting requirements are much reduced (in some cases, just filing a 1040).
- o-__-o 7y agoThe second can only occur because of the first. It’s also why I said keep a bank ledger :)