Almost every business is organized as a corporation or LLC to prevent lawsuits from reaching your personal assets. If the business gets sued, all assets of the business might be at risk, but your household assets should not be. However, the courts have pierced the corporation's protection and have allowed claimants to get personal assets, in some cases even giving away a house. This is called "piercing the corporate veil".
In a recent case, a group of New York doctors got quite closing to tasting this bitter pill. Although they escaped by the skin of their teeth, the case teaches valuable lessons. Since litigators are looking at this case for guidance on how to pierce through corporations in future cases, you should look at this case for how to shore up yours. Cherkasets v. Gordon, 21 AD3d 856 (1st Dept. 2005). These lessons apply to more than doctors, and the concepts should apply to other states and LLCs as well.
Look at the following example: You and your partners have a medical practice corporation and surgical center LLC. Take the following tips into consideration, to avoid having your personal assets taken away from you in a case of malpractice.
By following all of these rules, you should be able to protect your assets.
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