Entities

The use of business entities allows people to limit their exposure to liability. If you own business assets, rental properties, or investment accounts, entities can be utilized for protection. The corporate veil protects business owners and entrepreneurs from being personally responsible for debts and liabilities of the company in most cases. In addition, charging order protection can protect business assets from personal obligations or liabilities of an owner. As is typically the case in the law, certain procedures need to be followed and documentation prepared to ensure that you will be protected. I have seen cases where the corporate veil has been pierced because of commingling of assets, lack of documentation, and improper funding. In the same regard, charging order protection is usually not afforded where the entity has only one member. So, while it is tempting to create your own entities online, this can be a recipe for disaster. I stand ready to provide you with experienced guidance on how to structure your entities, what documents to prepare, and which state should be utilized as the principal domicile.