Protecting Your Personal Assets: Your #1 Goal As A Business Owner

Posted by Nellie Akalp under Legal
From http://tweakyourbiz.com 4079 days ago
Made Hot by: robinandy58 on October 1, 2013 12:18 pm

Nellie Akalp, CEO of CorpNet, shares how to protect your personal assets at your small business in this Tweak Your Biz post!

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Written by Steven J Fromm, JD, LLM (Tax)
4015 days ago

Be careful here. Corporations are not a cure all and the do NOT protect against all liabilities. How the corporation is operated is very important.

If corporate formalities are not observed, such as having regular board of director and shareholder meetings, the corporate veil can be pierced. This can result in personal liability to shareholders.

As another example, if a corporation pays creditors before payroll taxes, the Shareholders or officers can be found personally liable for such taxes under Section 6672 of the Internal Revenue Code.

Bottom Line: This article overstates the protection that a corporation provides and how that corporation operates is vital to providing personal liability protection.

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Written by lyceum
4078 days ago

What is best way to protect your personal assets? In the blog post it is a house as an illustration. Is your house really an asset? Is it not more of a liability, if you don't earn money from your home by renting out rooms, etc?

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