Can forming a corporation protect individuals from personal liability?
Posted on Tuesday, April 13th, 2010 at 5:54 pm
One of the advantages of forming a corporation is that the founders can be protected from personal liability. This means that creditors and investors cannot go after the executives’ personal assets if the company files for bankruptcy or is sued.
To gain corporate status, individuals must file their startup as a corporation on their tax return. To maintain this status, the company must act like a corporation with a corporate board and meetings.
If you or anyone you know has questions about filing for bankruptcy, contact the Des Moines business lawyers of LaMarca Law Group, P.C., at (877) 327-2600.