If I open an investment business selling real estate, can someone sue me personally?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I open an investment business selling real estate, can someone sue me personally?

I’m thinking about opening a real estate business in FL. I wanted to know how strong the corporate veil is if someone sued me for whatever reason?

Asked on December 20, 2018 under Real Estate Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If you set up a corporation or LLC, the protection is strong, but not absolute:
1) You can be sued for something you personally did, rather than being sued just as an owner or manager of the company. Say, hypothetically, you defraud someone by failing to mention a problem with the real estate--if you (and not an employee of yours) was the one who made the fraudulent statement, you can be personally sued for you own wrongful act.
2) IF you fail to honor the corporation's/LLC's independent existence by comingling its money with personal money (or the money of another business you own), or having the corporation/LLC pay personal expenses for you, that can result in losing the protection and "piercing the corporate veil"--if you don't treat the corporation/LLC as its own, separate entity, you don't get the benefit of it being a separate entity.
3) If you personally guaranty any debts or obligations, you can be sued for those.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption