While most small businesses know that incorporating can shield personal assets in the event of a frivolous lawsuit, many are lulled into complacency by an “it-won’t-happen-to-me” attitude. This thinking has resulting in tremendous losses to many unprepared business owners.
Perhaps the most sought after benefit of incorporating is the ability to separate personal assets from business assets legally by establishing a corporate veil. The corporate veil prevents lawsuits and other adverse actions against a business from targeting the personal assets of the business owner. There has never been a case in which the corporate veil has been pierced on a Nevada corporation that has been run properly.
Did you know...
- 90% of all companies are engaged in a lawsuit.
- More than 50% of all companies have filed a lawsuit in the last year.
- Personal injury claims average 385 days of litigation.
- 40% of corporate counsel can’t even quantify what it costs to defend a lawsuit