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Even during economic expansions, the failure rate for small businesses is high. Of course, things are even worse now, in light of the falling GDP and rising unemployment.

However, if a business needs to close down, the risks may be much larger than the overall investment. For example, in times of economic distress, there's likely to be a higher likelihood for lawsuits that can expose a small business owner to personal liability.

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Entrepreneur's Journal: Protecting personal assets when the business dives originally appeared on BloggingStocks on Sun, 07 Jun 2009 16:40:00 EST. Please see our terms for use of feeds.

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