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And I'll warn you a limited liability entity doesn't necessarily protect your personal assets either.

Undercapitalization is a big one that people don't often realize - going without insurance an not enough funds to cover a claim will usually pierce the veil.

Same goes with little things that typically don't matter to the owner of a one person company, like failing to keep board/member annual meeting minutes and sending them to the state body that requires them, and the biggest one for most small businesses - commingling funds and "alter ego" doctrine - the company is not you, the company's money is not yours.

There are a lot of ways that limited liabilities vanish - especially for smaller businesses like OP is describing.




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