You’ve worked hard to build your business, so what do you do when a lawsuit threatens its revenue and reputation? How do you handle business disputes? After all, you don’t want to say or do the wrong thing to expose your business further. For that reason, you need Attorney Peterson on your side to help protect your brand, assets, and your good name!
Did you know that corporations and limited liability companies (LLCs) are legal entities, separate and distinct from those who create and own them? According to case law, only an attorney licensed to practice law in the state of Georgia may file pleadings on behalf of a corporate entity or another person, including an LLC, in a court of law. Shareholders or members who attempt to represent their companies will risk a default judgment or a dismissal of a claim if one is asserted.
While corporation and LLC shareholders and owners' personal assets are protected, there are exceptions. Referred to as "piercing the corporate veil," courts can override the limited liability "veil" and hold those who own and run these entities personally liable for the corporation's actions or debts. That means that creditors can legally pursue their assets, such as home, bank account, and investments, to satisfy the outstanding debt.
On the other hand, plaintiffs can sue sole proprietors as individuals; therefore, these business owners should seek legal counsel, even if they can represent themselves. Often, they mistakenly go into lawsuits without the guidance and expertise of an attorney due to the cost being out of their budget. However, they quickly realize handling legal disputes alone can have several life-changing consequences. In the end, they risk losing it all or going bankrupt because of their misjudgment.
Undoubtedly, the cost to secure proper representation for yourself or your business entity is no comparison to all you have at stake. That's why it's critical to secure strong legal representation to give you the confidence and the peace of mind when facing a small business litigation matter.