Legal Question in Business Law in California

Re: Business sued

depends on how the business was set up, and whether you are liable for its debts. Consult with an attorney to get an actual and usable opinion whether you have to personally defend the case. Feel free to contact me if it is in SoCal courts.

Re: Business sued

More information is needed to answer your question. You dont' state the nature of the business, what it's form was (corporation, LLC, partnership, etc.), whether you personally guarantied the debt, or whether a creditor could somehow go through, or "pierce" the corporate or LLC entity to claim that you are one in the same as the entity.

You should retain and consult with an attorney to be fully advised of your situation.

Re: Business sued

If you were doing business as a sole proprietorship (dba) or if you personally guaranteed the debts or obligated yourself, you will be personally liable for the debts and can be sued. If the creditors obtain a judgment against you, they can enforce the judgment against your personal assets. In some cases, creditors can also seek a prejudgment attachment order on your assets, but these are sometimes difficult to get and the costs many times outweigh their benefits.

This is one of the very critical reasons to incorporate or form some other entity with limited liabilty protection.

Let us know if you have further questions. We provide business formation and counseling services to many individuals and companies.