Understanding Corporate Limited Liability

You can legally create a fake person to protect your life savings. That is exactly

what a corporation is under the law. It is an artificial being that exists separately from

you. This is huge because of limited liability. If your business goes bankrupt or

gets sued, they generally cannot touch your house or your car, only the money you

invested in the company. It is basically a safety bubble for entrepreneurs.

But there is a catch. If you use that bubble to scam people or commit fraud, the courts will

pierce the corporate veil and make you pay for everything personally.