Q: If a business is sued, could I lose my house?
I am retired and have a self-publishing business part-time to sell books I have written. If I use my residential house address where I live for this business address, and if someone sued the business, would it be possible for me to lose my house?
Thank you.
A: It doesn't matter what address you use for the business. If a lawsuit finds you personally liable, then all your personal assets would be at risk - including any real estate you own. Use the Find a Lawyer tab to retain a local business attorney who can advise you about protecting your personal assets against business risks. Also talk to a business insurance agent about appropriate coverage to reduce the risk to your personal assets.
A: The answer is it depends. If you are operating your self publishing business without the protection of an LLC or other entity, then yes you could be found personally liable and have your personal assets, such as your home. Even if you have your business in a corporation or LLC, there are some claims that can find personal liability against the owner, such as certain consumer claims or wage and hour claims. However, having your business in an LLC or other entity is the best way to insulate your personal property. Contact an attorney to assist you if you need to.
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