Business activity involves risk. It is the owner’s willingness to take a gamble, to accept risk that gives him the opportunity to make a profit. No one starts a business expecting to fail. However, not all businesses are profitable. Even those that are profitable sometimes stumble: a claim by a disgruntled customer; the failure of a product that was purchased and resold; an employee whose negligent actions hurt others. The possibilities are numerous and can impact even the careful, responsible business owner. For that owner, or for the entrepreneur starting a new business, sooner or later the question arises: How can I protect my personal or family assets from claims against the business? The knee jerk response is: form a corporation—form a limited liability company (LLC). Everyone knows that will protect me. Right? The answer, as is typical in legal matters is: it depends.