Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Your Free Business Opportunity Resource Is Easy To Use
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News

Find Great Business Opportunities - Book-of-the-Month - Author David Alford maintains that “opportunities come everyone’s way,” but few people know what to do when they find one. And in fact, few people actually know how to find the best ones.

That’s why he wrote

Optimizing Your Business for Mobile - Not too long ago, your business would be considered tech savvy if your website was easy to read on a smartphone and employees could access their emails on the go.

But, with how quickly the digital world is moving these days, this is just the beginning...

Conversion Rate Optimization - Every business owner knows the importance of a good online presence to increase a company’s visibility in a crowded and competitive marketplace. But getting more visitors and broader publicity is only half the story.

By improving conversion rates, you can give...

Sponsors

STARSCAPES®
Imagine making up to $500 to $1,800 a day! Call or click now see how you can get your business for FREE! (602) 679-0257
Kaeser & Blair Promotional Products
Run Your Own Business. Be Your Own Boss. Earn Great Profit Potential. Start At A Low Cost. Try It For Free! Learn More.
 
Resource Center > Article
A Layman’s Guide to Understanding Limited Liability
27 Mar 12 Posted by: Kathleen C Lanza
in Featured Articles
Share this Article:

If you are a small business owner you have options when it comes to how you organize your company from a legal standpoint. As you begin to educate yourself on the choices that are at hand, one very important point to keep in mind is the issue of liability.

Liability can be a fairly complicated issue, one that is oftentimes best understood by way of example:

Let’s say you’re the owner of a small take-out business with a small storefront and only a few employees. The obvious choice for you given the seemingly simple nature of your business might be to remain a sole proprietor. And while that may seem to be the least complex and less cumbersome option, it is important to understand its associated risks.

The truth is that you could go for years operating under this scenario and never have a problem. But what if one of your customers slips one day on the ice just outside the entrance to your establishment? Then what happens?

Well, if you’re a sole proprietor and that person suffers any kind of serious injury, it’s not just your business that’s in jeopardy―it’s your personal assets as well.

Fortunately, there is a fairly simple and straightforward option available to the small business owner, one that can offer much-needed protection in an unfortunate instance like the one just described―it’s called an LLC, or Limited Liability Company.

In the case of an LLC, a business operates as a separate legal entity apart from its owner or owners. As such, anyone with an ownership stake in the company is not liable for any financial obligations that fall outside the realm of what they own directly, and their personal assets are therefore generally protected.

Although setting up your small business as an LLC can protect you when the unthinkable happens through no fault of your own as a small business owner, it’s important to note that it won’t cover you in the event that a wrongful act is committed. For instance, if you get into an altercation with a customer and shove that person in a moment of anger such that they fall and are injured, then your ability to protect yourself from personal liability is minimal at best. In the event of a scenario such as this, the sad fact is that no amount of thoughtful planning on your part may be able to protect you or your assets.

Related Blog Posts
1 Jun 17 Posted by: Kevin James Culp
in Featured Articles

Find Great Business Opportunities - Book-of-the-Month - Author David Alford maintains that “opportunities come everyone’s way,” but few people know what to do when they find one. And in fact, few people actually know how to find the best ones.

That’s why he wrote
7 May 17 Posted by: Sally Keys
in Featured Articles

Optimizing Your Business for Mobile - Not too long ago, your business would be considered tech savvy if your website was easy to read on a smartphone and employees could access their emails on the go.

But, with how quickly the digital world is moving these days, this is just the beginning...
23 Apr 17 Posted by: Sally Keys
in Featured Articles

Conversion Rate Optimization - Every business owner knows the importance of a good online presence to increase a company’s visibility in a crowded and competitive marketplace. But getting more visitors and broader publicity is only half the story.

By improving conversion rates, you can give...
19 Apr 17 Posted by: Tom Ollerenshaw
in Featured Articles

International Business Expansion - Once your business has established itself on the domestic scene, you should then think about the next steps for your company to help it develop and grow.

International Business Expansion - One option you may want to consider is to take your business overseas...
17 Apr 17 Posted by: Sally Keys
in Featured Articles

Effective Project Management - Managing projects effectively to keep them on track, on time and on budget is critical to every business. However, it is particularly so for a small or fledgling business where resources...

 
   

Entrepreneur Exchange is our forum where we interview the Influencers, CEO's, Author's, Business Owners Of All Types, Shapes and Sizes.

Entrepreneur Exchange: Today, we sat down with Marc Winkelman, CEO of
Video Spotlight

Become a Dealer For Our Portable Self Loading Forklift! We Want To Talk With You. Call Us Toll-Free for Additional Information at 1-866-924-LIFT (5438) Today!


Premium Sponsor