Many business owners choose to form a limited liability company (LLC), often due to this entity’s protections from personal liability for business debts. When you form an LLC, the company becomes a separate legal entity from yourself, unlike a sole proprietorship or basic partnership. This generally means that parties cannot go after your personal assets or property to satisfy business debts or judgments. However, there are certain situations in which an LLC owner may become personally liable. A small business lawyer in San Francisco can help ensure that you maintain LLC liability protections whenever possible.
Piercing the Corporate Veil of an LLC
In some cases, a court may allow a creditor to “pierce the corporate veil” of an LLC and hold owners personally responsible for payments. There are different reasons the corporate veil may be pierced, including:
The main concern for LLC owner is proper financial separation and record-keeping regarding business funds and personal funds. This can often be difficult for some small business owners, so you should not hesitate to seek professional help.
Learn How a Small Business Lawyer in San Francisco Can Help
Our San Francisco small business attorneys at Primum Law Group regularly advise LLCs and other small business owners regarding a variety of issues, including liability protections. Please call 415.293.8042 or contact us online for more information.