Legistify
1
0

Protection Of Company From Liability

How is a company protected from any kind of liability?


85
Team Legistify

It can, if you handle it right. You may have heard about the corporate veil, which means that you can't be sued personally for anything that happens in the corporation and your personal assets can't be attacked by creditors or a lawsuit on the corporation. But in order to have this protection, you must act like a corporation. This means having board meetings, taking notes and publishing minutes in your corporate book. In addition, be sure to have a separate corporate checking account and, if you need them, corporate credit cards. Don't use corporate money for personal things, and vice versa (unless you file an expense report). Many people think they don't need to go to all this trouble if there's just one or two people in their company, but in order to be treated like a corporation, you must act like one. Your attorney can give you more details.

Upvote


Ask Your Legal Question Now

Ask a Query


Tags: Company Incorporation Legal Structuring Agreement Drafting

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


You might like reading these