In this economy a lot of people either prefer to start their own business or are compelled to because of the current job market and decide to take the plunge into the realm of being a business owner. This is your window of opportunity. Wonderful! Now let’s be smart about it.
Reena Gulati Blog
Have you ever experienced attempting to refinance or obtain a loan only to find there is judgment against your name or your business? Do you believe that the judgment is erroneous? Or that the incorrect entity has been sued? Often the business owner does not find out about the judgment until service of a Marshal’s Notice. In these instances the business owner either never received proper notice of the lawsuit or failed to respond to a complaint and a default judgment was entered against the business owner.
Most people form a limited liability Company to shield their personal assets from liability and debts of the LLC. Did you realize that most single member LLC’s are at risk to pierce the corporate veil? You can avoid that outcome by taking certain steps. These small steps if done right can be very beneficial in avoiding liability that you never intended to take on but can be devastating for any business, particularly for a small business owner.