Every business owner’s worst nightmare: your future business gets sued for using an image on your website that you had no idea was owned by a large corporation. After a stressful and expensive court battle, the corporation wins a huge judgment against your business. You don’t have enough business assets to cover the amount of the judgment. Sadly, your business is out of money. Can the corporation take your personal assets too?
If you haven’t formed a business entity that limits your liability, then, yes, your personal assets could be at risk.
If you’re striking out as a business owner, freelancer, 1099 contractor (yes, 1099 contractors are business owners!), or startup founder, you have a lot of decisions to make about your business. One of the first questions should be: