Chico Corporate Law Attorney

Reliable Legal Counsel on Corporations

The majority of people know that forming a corporation provides "limited liability" and this sounds appealing because it limits an individual's personal liability for business debts. What many people do not know is that there is far more to creating a corporation than filing a few papers. Individuals who seek to start a corporation must be extremely organized and follow corporate formalities regarding decision making and record keeping. Running a corporation takes hard work, but a Chico attorney from our firm can help make the process easier.

One of the main draws of a corporation is that the owners will only lose the money they have invested in the corporation if the corporation falls into debt. The owner's personal assets are protected from creditors of the corporation, and only corporate assets can be used to pay off debts. However, there are some exceptions to limited liability where an owner's personal assets will not be protected. Under these circumstances, it is especially important to have the guidance of a Chico attorney who can represent your rights.

Exceptions to Limited Liability in Corporations

There are some circumstances in which limited liability will not protect an owner's personal assets and the owner can be held personally liable. The following are good examples of that:

  • If the owner personally and directly injures someone
  • The owner fails to deposit taxes withheld from employees' wages
  • Personally guaranteeing a bank loan or business debt on which the corporation defaults
  • Doing something intentionally illegal that causes harm to the company or someone else

In some cases, the court can rule that a corporation does not really exist and that the owners should not be shielded from personal liability for their actions. It is always wise to have liability insurance to guard your corporate assets from lawsuits and claims, and a solid liability insurance policy can protect you from many risks of doing business. The knowledgeable attorneys at The Law Office of Nikki Farris can help you seek protection from these risks and more. We have been practicing law under our former firm name, Baker & Farris, for several years and we are well-equipped to handle your case.

Contact our firm to speak with a Chico corporate law attorney to schedule your consultation today!

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