I am considering starting presales of a product. Since money may be coming in I wanted a business bank account so if I am ever sued for any reason I'll only lose what I put in the business and not everything.
When I looked at forming a corporation I notice the director is personally liable (to an extent). This worries me. To what extent am I liable? If I sued for some reason can I lose my personal properties? (lawsuit example: failing to complete a contract, malicious competitor trying to bankrupt me by taking me to court)
Right now I am the only person working on this product. I plan to have up to 3 others for sales, marketing and help on the floor of trade shows. Likely another 1-2 people to travel on the road for training purposes and outsource the development of an addon produce. I may be able to contract all of these.
I may be the only full time person in the company. Therefore if I am sued, it would be likely something I was directly responsible for. Is there a point to forming a corporation in this case?
Or am I protected and only lose the money I put in? (excluding illegal activities) Breaking a contract is legal but the company can be sued. Will I be sued?
I am living in Ontario, Canada and interested in answer for countries/territories.