Lifelock to Pay Federal Trade Commission $12 Million

Phoenix Business Journal:  “LifeLock Inc. has settled a lawsuit brought against it by the Federal Trade Commission and 35 states for $12 million, ending a lingering legal battle about what the company promised in its advertising versus what it could deliver in regards to preventing identity theft.”

If you operate your business as a sole proprietorship or a general partnership, this story illustrates why a person should always operate a business through an LLC, limited partnership or corporation.  How would you like to owe the FTC $12 million for something your employees did?