What Happens If A Sole Proprietorship Is Sued?

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

Since a sole proprietorship is not a separate legal entity from its owner, the owner is on-the-hook for any liability attached to the business. So if someone wins a lawsuit against your sole proprietorship (such as in a claim for negligence, or default on a contract), you will be legally obligated to cover that judgment. This is one of the greatest risks in starting a sole proprietorship (because several other business forms offer their owners limited liability), particularly where there is any potential danger connected to your business, its operation and/or its products.

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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.