Asset Protection and S Corporations

S corporations offer greater asset protection than sole proprietorships and general partnerships. A sole proprietor or general partner has unlimited personal liability for the debts and obligations of the business. In other words, their personal assets (like their home, car, and personal savings) remain at risk in a judgement against the business.

In contrast, S Corporations allow owners to separate and protect their personal assets from the debts and obligations of the business. In a properly formed and structured S Corporation, a judgement against the business should not affect an owner's savings or personal possessions.

Form your S Corporation online or contact a Business Specialist at 800-818-6082 (toll-free) or 302-636-5440.