Personal Liability in Sole Proprietorships

Your boss is legally responsible for your mistakes if you mess up on the job.

It’s a concept called agency, or let the master answer. If a delivery driver

breaks a window, the company pays, not the driver. But here is the scary part for entrepreneurs.

If you run a sole proprietorship, you are the master, the agent, and the business

all at once. That means there is no corporate shield protecting you.

If you get sued, they can come after your personal bank account, your car,

and even your house. Being your own boss is great until you realize you are personally liable

for everything.