Home About Us FAQ Publications & Press Speaking
Links & Resources Contact Us
Limited Liability Companies
Limited Liability Partnerships
Limited Partnerships
Asset Protection Trusts
Domestic Asset Protection Trusts
Equity Stripping
Financial Planning Exemption
Tenancy By The Entirety
Charging Order Protection
International Entities
International Trusts
Captive Insurance Companies
Business Entities
Contract Formation and Review
General Business Counsel
Business Succession Planning
Current Estate Plan Review
Drafting Wills and Trusts
Incapacity Planning
Probate Administration
Charitable Remainder Trusts
Online Asset Protection Quiz.

When is a business too small to incorporate?

No business is too small to incorporate because no business is safe from lawsuits. Obviously, the larger enterprise has more need for corporate protection if only because it is a larger lawsuit target, but still no business, no matter how small or seemingly safe, is immune from legal and financial disasters. Here is why we say no business is safe. A wealthy widow from our neighborhood, and a client, enjoyed spending her weekends selling imported dolls at a local flea market. Not long ago she sold a defective doll. A customer's three-year-old daughter punctured her eye after dislocating the doll's arm, exposing a large nail. This lady is now defending herself and her insignificant wealth against a $5 million products liability claim.

Had she incorporated her tiny kiosk enterprise, her corporation, and not herself, would have the liability; her personal assets would not be in jeopardy. Why didn't she incorporate? Her accountant discouraged her. "You don't need a corporation. Why spend money to incorporate to run a nickel-and-dime weekend business?" Bad advice! Had she incorporated, she would not be worried sick about losing everything she owns. Incorporating is your best insurance!

Categories: Asset Protection


No Comments Posted
The Presser Law Firm, P.A. - Asset Protection Attorney
Located at 6199 N. Federal Highway Boca Raton, FL 33487. View Map
Phone: (561) 953-1050