Starting Up Smarter

One of the main reasons that entrepreneurs incorporate their businesses is to protect against personal liability.  By incorporating, they insulate themselves from liability in the event that the business just doesn’t work out, or if there is a catastrophic loss that exceeds the business’ assets. 

However, incorporating is just the first step.  Those who are not sensitive to what it takes to maintain their personal liability and vigilant in protecting it can be in for a rude and costly awakening.  More often than not, this awakening comes at the worst possible moment, when someone is seeking to assert claims beyond the company’s means and “pierce the corporate veil” so that they can reach the assets of the shareholders. 

However, incorporating is just the first step.  Those who are not sensitive to what it takes to maintain their personal liability and vigilant in protecting it can be in for a rude and costly awakening.  More often than not, this awakening comes at the worst possible moment, when someone is seeking to assert claims beyond the company’s means and “pierce the corporate veil” so that they can reach the assets of the shareholders.