It is important to understand that when operating a business, the address used for the business may not be the deciding factor in determining personal liability. If a lawsuit were to occur and it was found that you were personally liable, all of your personal assets, including any real estate you own, would be at risk. This is why it is crucial to retain the services of a local business attorney who can advise you on how to protect your personal assets against potential business risks.
One of the ways to protect your personal assets is by incorporating your business. This creates a separate legal entity and limits your personal liability for the actions of the business. A business attorney can help you understand the pros and cons of different types of business structures and guide you through the process of incorporating.
In addition to seeking legal counsel, it is also important to speak with a business insurance agent to ensure that you have the appropriate coverage in place to minimize the risk to your personal assets. This can include liability insurance, property insurance, and even errors and omissions insurance. It is important to take proactive steps to safeguard your personal assets and reduce the potential for financial loss. A business insurance agent can help you understand the types of coverage available and recommend the best options for your specific business. Remember, it’s always better to be safe than sorry.
Sanjay Sabarwal focuses his practice in the areas of Employment Law, Family Law and Personal Injury Law and provides outstanding service and expertise for your legal right to win cases with personalized attention and insightful counsel. Mr. Sabarwal has been the Co-Owner and House Counsel for Ziba Beauty, member of the American Bar Association, Los Angeles Bar Association, South Asian Bar Association and Orange County Bar Association. He also serves on the Advisory Board for Youth Business Alliance, which connects entrepreneurs to speak at underserved schools in Los Angeles County. He is also a board member for the Artesia Chamber of Commerce. Contact Sanjay at sanjay@sabarwallaw.com or (562) 250-4471.
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