Personal liability is an ongoing issue for small business owners, which is why many in Bullhead City, AZ, choose to incorporate. However, the seasoned lawyers at Knochel Law Office urge small business owners to remain aware of costly mistakes that can occur when signing leases and other documents.

How to Maintain Limited Liability

To maintain limited liability on behalf of your business, there are certain steps you must take. For instance, ensuring regular board meetings occur is a must, and you should make certain you are closely following all pre-established corporate bylaws. Having a separate bank account is also crucial, as it will show a separation between you and your business. Your lawyer can provide further insight into these requirements.

Proper Execution of Legal Documents Is Crucial

Along with the above considerations, you must keep potential issues when signing legal documents in mind if you want to maintain limited liability. One recent case saw a tenant and business owner in hot water after falling behind on his rent. When signing the lease agreement, this individual signed using his own name, with no designation as president of his company, though he was identified as such within the body of the document.

Accordingly, the business owner argued that he should not be held personally liable, as it was his incorporated company and not himself named in the document. The court disagreed, and because he failed to identify himself as president of his company, he was found personally liable and ordered to pay the outstanding rent.

Along with an understanding of business law matters, Knochel Law Office can also provide legal aid in a number of other areas, from establishing child support orders to filing for bankruptcy. Schedule your consultation with a respected Bullhead City lawyer by calling (928) 444-1000 today. Want more information? Feel free to visit this firm online for a complete list of practice areas.