The Advantage of Corporate or LLC Formation Is the Protection From Personal Liability

Written by Adam Peck Category: Injury Law January 16th, 2013 1 min read

The greatest advantage to running a business as a corporation is that, as with an LLC, the owners are protected from being personally liable for any losses, debts or obligations of the business itself. So, for example, if your corporation were sued and lost the case, the successful plaintiff would not be able to go after your personal belongings – the most you could lose is whatever you had actually invested in the company. In addition, because a corporation is an entirely separate legal entity from its owners, a corporation generally has an unlimited life beyond the life of its owners, lasting for decades or even centuries.

The other major advantage of a corporation is its ability to sell stocks, allowing investors to become partial owners of the company. It is therefore easier to raise capital with a corporation than with other types of business forms, because you can take your company public and allow anyone to become an investor/shareholder.

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.