personal vs corporate liabitlity

[ed-guy]

Jurisdiction

Illinois

Hello,
I have a product idea, made some prototypes and is planning to file for a provisional patent.

I am trying to figure out a way to limit my personal liability

If I create an S Corporation in Illinois and then assign the patent to the corporation and the corporation makes the product and sells, will it shield me from product liability. If the corporation is sued and is found liable, will I be responsible as the inventor ?

thanks
ed

 

[adjusterjack]

If the corporation is sued and is found liable, will I be responsible as the inventor ?

Your basic fallacy is that you think having a corporation means you can't be personally sued and held liable.

That's wrong.

Nothing prevents that lawsuit from naming you personally as well as your corporation and if your corporation is an empty shell a plaintiff can pierce the corporate veil and get to your personal assets.

The best and only way to limit your personal liability is buy the property Comprehensive General Liability/Products Liability insurance with sufficiently high limits that will cover your assets.

If you think you can run a business without the proper insurance, think again, it's the road to ruin.