Business entity registration

What is tort liability?

Does an LLC or S corp entity protect me from all liabilities including tort liability?

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Answer

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    It is a common misconception that an LLC or corporation can protect you from all business risks and liabilities.
    An LLC or corporation only protect its owners from contractual liabilities, or liabilities from not fulfilling your end of the contract in providing the promised good or service.
    Tort liability refers to liabilities that arise from personal negligence or wrongdoing. In the event of a law suit due to your own wrongdoing, your personal assets may be at risk, regardless of your entity type.

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