What would you do if you had the option to protect yourself from a lawsuit that could cost you hundreds of thousands of dollars, but the option cost a few thousand dollars up front? Would you take the option or would you take the risk?
If you are a sole proprietor—a business owner who has never formed a C-corporation, an S-corporation or a limited liability company to operate the business—you are taking that risk. Sole proprietors are completely personally liable for lawsuits against them, including their houses, cars, salaries and more. You’re going to be liable for everything beyond the limits of your insurance—and you do have insurance, right?
At the Tull Law Firm, we know that as business owners, you are very busy with running your business. You’re focused on building and growing your enterprise. How often do we consider our corporate structure and how it might affect our personal lives? Do you really want to have to tell you spouse that the house is being sold and the kids are not going to college? If you are that spouse, and you’re reading this page, you might want to consider tricking your business-owning spouse into thinking you are going to lunch and taking them to see an attorney. Don’t wait another moment to protect yourself, your business, and your family.
If you are considering starting any business, save yourself and your family by not doing anything until you first form a limited liability entity so it protects your personal assets. It will take no more than an hour or two of your time, a few hundred dollars to the state, and a few hundred to your attorney. It should be the very first step in any business venture.
For any of you who are in partnerships or sole proprietorships— the two default categories that offer no personal protection—do not let another month pass without talking to an attorney about your business structure. Remember, if you do nothing, you have no protection. All your personal assets are up for grabs if you are sued and found liable. A small amount of time and money is all it takes to protect yourself and your family from financial ruin.
We spend an entire year on this topic in law school—all business owners should devote a couple of hours to the topic. If you want to know more, please give the Tull Law Firm, PLLC (notice the PLLC – it stands for Professional Limited Liability Company) a call at 615.530.5719 or by any of the other means on our contact page.