Exceptions to the Limited Liability Protection of a Corporation
Incorporating your business may offer benefits over a sole proprietorship or partnership structure, especially since establishing a corporation or limited liability company provides protection of the personal assets of officers, directors, and shareholders.
However, its important to understand that there are limitations to this protection. A few actions that are not subject to the limited liability of corporate or LLC status include but are not limited to:
- Personal guarantee of loans
- Tax evasion
- Criminal activity
To find out more, check out Exceptions to the Limited Liability Protection of a Corporation, which discusses several situations when your status as a corporation may not give you limited liability. And while youre there, take a look at the MaxFilings Knowledge Center to get more important questions answered.
Tags: Corporations