How do I protect personal assets from business liabilities?

A big piece of protecting the personal from the business is to maintain a definite line between the two. Many business owners will expense things that might be personal expenses. This can be great for taxes and many times has no issues.
An issue can arise when someone in a lawsuit argues that there is not a separation between you and the entity. If you have been using the company’s bank account to purchase personal items, the lines become much more blurry. This can expose your personal assets to risk that they should not be.
The other thing to be aware of is personal guarantees. Many loans or lines of credit will require some form of collateral. For a business with a small balance sheet, this collateral will sometimes be a personal guarantee. There might be no way to avoid this guarantee, but you want to at least be aware of it.

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