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A plain-language map of exactly where your limited liability shield holds and where it cracks, which is the anxiety underneath every shutdown. It spells out that company debts and employment obligations belong to the company, not you, unless the veil is pierced, and names the specific triggers that pierce it: fraud, ignoring corporate formalities, unpaid taxes, and your own negligent or intentional conduct. That is precisely our line: you are not personally on the hook unless you gave a personal guarantee or committed fraud.
Founder Liability: When Are You Personally on the Hook?
From California Startup Law Firm by California Startup Law Firm 8 min read
- Insolvency debts and employment obligations sit with the company; founders are not personally liable for them by default
- The shield breaks only in specific ways: fraud, using the company for improper purposes, or skipping formalities like paying taxes and holding meetings
- You always own your own conduct, so negligence or misconduct during the wind-down can attach to you personally even inside a corporation
