I owe some debt for running my small business, can people ever come after my personal funds for the debt?

Question: For my small business, can people that I owe money to come after my personal funds?

Response: If your business is incorporated as an LLC or a Corporation, then you would not be personally responsible for any of the debts of the company. This means that you can only lose as much as you invest in the business and nothing more. If you are a Pole Proprietor or a Partnership, then you could be personally liable for the debts of the company.

Nevertheless, even if your business is incorporated as an LLC or a Corporation, you can still be personally liable for the debts of the business if your corporate veil is pierced. This basically means that if you treat the funds of your business as your own and commingle them, you become the business and enable your creditors to pierce the shield of the business and reach your personal assets in order to satisfy the debts.

Answered by Marina Ricci

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