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Basic Business Liabilities

When you operate your own business there are a number of different liabilities that may be incurred as part of your business operations. If your business has employees, the business is liable for the timely payment of all payroll taxes. If you collect sales taxes, they must be remitted properly. If either payroll or sales taxes are not paid, the government may seize the business and sell assets to collect the taxes due. Your business may also be held liable for injuries to your employees and your customers that occur at your work place or due to products you manufacture. The business may incur liabilities whenever there is a contract for the performance of services or for the purchase or sale of products. Your personal liability will be determined by the legal structure of your business and/or personal guarantees you make on behalf of the business.