Can I Lose My Liability Protection if I Ignore Business Formalities?

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Can I Lose My Liability Protection if I Ignore Business Formalities?

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Short Answer: Potentially.

Why It Matters: Creating an LLC or corporation is only the beginning. Operate it as a separate business by maintaining separate finances, signing in the company's name, documenting major decisions, and following sound governance practices.

Common Mistakes: Mixing business and personal funds; signing personally; poor records.

Michelle's BottomLine: How you operate your business matters just as much as how you formed it.