Travis: Great. Now Jake, aside from asset protection, how does a corporate entity protect me? What does liability protection mean to the owners of an entity?
Jake: Really, what it means, as we talked about a little bit earlier was, you've got personal assets which are your home and car. Your personal property – jewelry, whatever those may be. And you've got business assets. The equipment that your business owns, maybe even a car or whatever else the business has.
When you form that company, it create a separation between the two. So, it really helps to keep that separate and to a creditor, or to someone who's suing you, they can only go after my business assets.
Travis: So if my company were to go bankrupt, and as long as I didn't pierce the corporate veil, my creditors cannot come after my personal assets?
Jake: Correct. That's how the liability protection will work.