What is the definition of liability protection?
When they say that an Incorporation or LLC will give me liability protection, what does that mean?
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Listen to the audio
- To listen to this interview snippet, just click the play button above (twice if necessary).
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In this audio snippet, you'll hear about:
- Your personal assets are not going to be touched when your business gets sued
- As long as you follow the corporate formalities
Audio Transcript
Travis:
OK, excellent. I know that we went over this in the Benefits call, but
just to be clear, what is the definition of liability protection?
Jake:
Liability protection is where your personal assets are not going to be
touched when your business gets sued. They can only go after your
business assets; they cannot go after your personal assets –– as long
as you follow all the corporate formalities that you have to follow.
Travis:
Of course, of which there are many. But if you know about them, then
they're not that difficult to keep in check.
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