If your business is operating as a sole proprietorship or partnership, like nearly 80% of small businesses in this country, you are personally liable for its debts and obligations.

You could be at risk if you signed a personal guarantee on your business. You might be sued if someone is injured while using your service or product -- even if you took the obvious precautions.

While attorneys will tell you that anyone can sue (disgruntled employees, customers, and competitors make the short list), it's possible to buy some peace of mind.

Keep good records. Make sure your financials are up to date, and respect the distinction between personal funds and corporate funds. If your company owes money and you've had your hand in the till, "a creditor can argue that your personal assets should be available to pay outstanding claims," according to the SBA.

Be timely and meticulous about payroll deposits. Withholding employment taxes is the responsibility of the owner, and you can be held personally liable for employees' share of Social Security and Medicare if those payments aren't withheld and submitted to the proper agencies.

Most all businesses experience cash flow problems at some point. The SBA advises small business owners to let their other creditors wait and make payroll tax deposits first. (The IRS would no doubt concur.)

When you borrow money from a bank, try to avoid a personal guarantee. Although the bank holds the upper hand on this one, there are a few ways you can avoid seeing your own skin nailed to the wall. These include securing loans with company assets instead of personal ones; seeking financing from non-commercial lenders such as government grants; building your business's credit to the point where it can apply for loans on its own; and/or obtaining lines of credit from your vendors or suppliers.