Guest guest Posted December 30, 2001 Report Share Posted December 30, 2001 For a thorough discussion of the pros & cons of the various ways to set up a small business written in English rather than legal jargon, I would recommend " Starting & Running a Small Business " published by Nolo Press (www.nolo.com) All the legal self-help books published by Nolo Press are outstanding, but I found this one to be especially helpful when starting out. This example of the limits of limiting personal liability via incorporation was an eye opener: " is the sole shareholder, director and officer of Market Basket Corporation, which runs a food store. , a Market Basket employee, drops a case of canned food on a customer's foot. The customer sues and wins a judgment against the business. Only corporate assets are available to pay the damages. is not personally liable. 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. 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. " Copied from Starting and Running a Small Business, Copyright © 1999, Nolo.com Best regards, Ann P-P Custom Stamps for Your Soap http://www.soapimpressions.com Soap Impressions Quote Link to comment Share on other sites More sharing options...
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