Know your risks and how to protect your assets against those risks
April 5, 2009
As a business owner, careful planning is essential. This includes the proper selection of the structure for your business entity that meets your unique needs from both a business and tax standpoint, careful drafting of the appropriate documents that protects your business interest, and implementing them. Even those without much personal assets should know that judgments and judgment liens are valid for 10 years and can be extended indefinitely by a judgment creditor through proper notice and procedure.
There is never shortage of absurd and even outrageous lawsuits. Here are a few examples that come to my mind. In 2002, a New York City restaurant patron sued four fast food franchises, claiming that they are liable for his obesity and heart attacks because of the unhealthy nature of the food. A thief unlawfully entering your property intending to robbing you blind, can indeed sue you, the property owner for any personal injury he may sustain on your property because you owe a duty of care to even a thief under the law. Let’s not forget the infamous McDonald’s hot coffee case where an 81 year old lady spilled a cup of McDonald’s coffee on herself, resulting in third degree burns. A New Mexico jury awarded her $2.9 million. Last but not least, a customer in Austin, Texas shopping in a furniture store tripped over a toddler running through the store. She broke her ankle and was awarded $780,000 by a jury for her injuries against the store owner even though it was her own child who tripped her!
To find out how you can protect your assets from lawsuits and divorces, contact us today for a free complimentary consultation.
Starting a Business in San Diego
May 27, 2008
When you go into business for yourself, you are usually personally liable for all judgments and debts that the business incurs. This includes business loans, taxes, money owed to suppliers and landlords, and any judgments against the business as a result of a lawsuit. If you don’t protect yourself, a creditor can go after your personal assets, such as your car and your house, to pay for these debts.
While you can protect yourself against lawsuits by buying business liability insurance, this won’t help you with business debts. Consider forming a corporation or limited liability company (LLC). Just one person can form either of these types of businesses.
