Re: To incorporate or not?

[Guest guest]

> If herself had dropped the case of cans, the fact that she is a

> shareholder, officer and director of the corporation wouldn't protect her

> from personal liability. She would still be personally liable for the

> wrongs (called torts, in legal lingo) that she personally commits. So much

> for theory. In practice, incorporating may not actually give you broad

> legal protection.

Ann, in the real world anybody can be sued for anything. Many times the cost

of defending oneself is more expensive than settling out of court and this

is what many attorneys bank on. In many States, win or lose you pay for your

own defense.

> In the real world, banks and some major corporate creditors often require

> the personal guarantee of individuals within the corporation. So the

> limited liability gained from incorporating isn't always as valuable a

> legal shield as it first seems. "

This is true regardless of how your business is set up.

Pat.

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