Post written by
Doug Bend
Doug is the founder of Bend Law Group, PC, a law firm focused on advising small businesses and startups.
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In general, the owner of a legal entity cannot be held personally liable for the liabilities of their business. That being said, business owners should be wary of the following seven items that they can still be held personally liable for:
1. Bank Loans
Most bank loans for new business owners require a personal guarantee. If a business owner provides that personal guarantee and the company is unable to meet the loan obligations, the bank can hold that owner personally responsible for the loan.
2. Security Filings
When raising a round of capital, it is important to make sure that any required security filings are made in each state in which there is an investor.
If the proper security filings are not made and the company does not do well, the investor can have their investment rescinded and the owner of the company can be held personally responsible for the investment amount.
3. Contracts
