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In this scenario, you've failed the business formality quiz. There is a very good chance the court will purchase the business entity to be a charade. That means you will be held personally responsible for the debts incurred in the lawsuit.

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A final caution: General guidelines guide you spot problem areas but discover need the business lawyer to a person to evaluate any of them. Gray areas and exceptions on the rules are all. When it comes to your IP, work by using a good lawyer to do things correctly.

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