The NESACS Blog
From the Northeastern Section of the ACS, focusing on career management and development
Categories:

Archives:
Meta:
October 2019
S M T W T F S
« Sep    
 12345
6789101112
13141516171819
20212223242526
2728293031  
04/22/10
Starting your own business. Legal protections
Filed under: Recent Posts, Mentoring, First Year on Job, Mature professionals, Legal matters
Posted by: site admin @ 9:13 am

Al Sklover [Details] responded to questions about steps
to protect yourself when starting out on your own
business.

Q:  “…A client of mine started his own business…
It has grown… and he is considering establishing
an LLC or obtaining liability insurance.  Could you
point out factors (legal, financial, etc.) that might help
him make a good decision?”

A:  “…we try to limit risks…. , thus insurance policies
are purchased.
      …we try to avoid unreasonable expenses, ….thus
limited liability companies LLC and limited liability
partnerships LLP. are formed with legal advice”

When starting a new business, concerns about unpaid
creditors and liability lawsuits arise.  “An LLC will protect
your personal assets against both.”

“…working through an LLC will not protect you against
losing your new business, or your new business being
hurt badly, if it is successfully sued.”

“A liability insurance policy would protect your personal
and LLC’s assets against liability lawsuits.  not from
claims of creditors.”

Frankly most people take both steps…”

“If we commit professional malpractice, neither
of the above will protect us.  Many professionals
will maintain a “malpractice insurance policy.”

         Best, Al Sklover


Leave a Reply