Legal Question in Business Law in Massachusetts

You can protect the owner from liability incurred by a company through incorporation.

But if the owner is personally liable for something, they may be able to go after the owner's equity in the business. The only way to try and avoid this would be to reallocate the equity ownership to someone else or a trust.

Mr. Coughlin is correct in part. If the owner of the business has partners or other shareholders, it might be worthwhile to execute a buy-sell agreement between the owners of the business so they can protect the business from an owner of the business' debts and obligations.

Please feel free to contact me if you have additional questions.