Business Law Attorneys Columbus,
At Somos Law Firm we provide experienced business lawyer services to the Columbus, Ohio and surrounding
How do you protect yourself from personal liability when starting your own business?
One of the most important considerations when you are starting your own business is to shield yourself from personal liability. If somebody slips and falls in your business, or if one of your employees has a car accident while driving the company car, how do you avoid being personally responsible to the third party?
One proven way to protect yourself from personal liability is to form a corporation. When you hear the word corporation you probably think of a large company, such as General Motors. The people who own General Motors are its shareholders. If a General Motors customer has a problem with one of its cars, the shareholders are not responsible, the corporation is. A corporation is a legal entity that has an existence separate and apart from the people who own it. A corporation can enter into contracts, own its own property, and otherwise participate in business affairs. Therefore, if you own a corporation, it is the corporation, and not you, who is responsible for the business' debts and obligations.
You should always talk to your insurance agent about obtaining sufficient insurance to protect you and your business. You should know that there are many ways to protect yourself from personal liability when operating a small business. A corporation is just one of them. Limited Liability Companies and Limited Partnerships are other types of legal entities that provide protection for small business owners.
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services in the Columbus, Ohio area, please complete our Consultation Form or call us at 614.488.2270.