2007-03-23 13:26:58 · 6 answers · asked by Anonymous in Business & Finance ➔ Corporations
You cannot do anything to stop people from suing you. The issue is only whether you might be able to dismiss the suit on the ground that the claim only lies against your corporation. To succeed on that ground you have to show that you properly formed your corporation, adequately capitalized it, observed the corporate rules, and separated yourself from your corporation. You also would have to show that the person suing you was in fact only dealing with the corporation, and has no valid claim against you personally. But if you succeed in all that, then yes, forming a corporation will help in keeping your personal assets safe from creditors, and will only allow them to reach corporate assets.
2007-03-23 13:32:16 · answer #1 · answered by rollo_tomassi423 6 · 1⤊ 0⤋
Being incorporated does not protect you from a civil suit.
Here is a more accurate idea of "piercing the corporate veil"
The corporate law concept of piercing (lifting) the corporate veil describes a legal decision where a shareholder of a corporation is held personally liable for the debts of the corporation despite the general principle that those persons are immune from suits in contract or tort that otherwise would only hold the corporation liable. This doctrine is also known as "disregarding the corporate entity".
2007-03-25 11:24:37 · answer #2 · answered by jim_elkins 5 · 0⤊ 0⤋
It protects your personal assets in a civil judgment. A corporation is a separate entity from you personally so if you were to be sued, they could only pursue corporate assets. You have to be careful because the courts have been known to "pierce the corporate veil" if it looks like an individual has incorporated simply to protect personal assets from civil judgment. You cant just become incorporated and not act like a corporation and expect the court to protect you.
2007-03-23 13:32:54 · answer #3 · answered by cinsingl83 3 · 0⤊ 0⤋
You can't incorporate yourself. You can start a corporation and you won't be personally liable for its debts, but nobody is going to lend money to your corporation unless you do something like put your house up as collateral.
2007-03-23 13:58:14 · answer #4 · answered by The Bird 3 · 0⤊ 0⤋
NOTHING protects you from civil suits.
Got to love the American Justice System.
2007-03-23 13:29:56 · answer #5 · answered by theMeganEffect 3 · 0⤊ 0⤋
If your name is Hally Burton it certainly does.
2007-03-23 13:34:22 · answer #6 · answered by Anonymous · 0⤊ 0⤋