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
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!