Partnership Risks: Protect Your Assets

Your business partner's mistake could cost you your house. In a partnership, there's no legal

wall protecting you. You and the business are one and the same.

This means if the business gets sued or goes bankrupt, creditors can come after your personal

assets—your car, your savings, everything. The law even says the relationship

between partners should be based on absolute trust, like brothers. So if your partner

signs a bad contract or racks up debt, you're equally on the hook. Before you start

a business with a friend, remember you're not just sharing profits; you're

sharing unlimited personal risk.