It happens all too often - a small business is formed, but the owner of that business treats it like a hobby and fails to do any diligence in setting up separate accounts, following corporate formalities, etc. The result? If the business goes south, a court could "pierce the corporate veil" and hold that owner personally liable for all of the debts of the business.
For more info, check out this article:
https://insightlaw.net/bobbys-blog/limiting-exposure-to-liability-critical-for-small-business-owners
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