Legal Question in Business Law in Michigan

Incorporate a business or not?

My husband has recieved his Master Electrician license and is in the process of obtaining his Contractors license. When he applies for a business name should he incorporate the business or go another direction? We are very new to the self employed world and with a young family we need to protect our home and family assets. What is the best way to go? Thank-you for your time and consideration in this matter.


Asked on 8/10/03, 10:45 am

1 Answer from Attorneys
Regina Mullen Legal Data Services, PLC

Re: Incorporate a business or not?

Incorporation will protect a great deal, but it doesn't cover everything. Even if the business were to be incorporated, that would not necessarily shield the family assets in the event of a major creditor or negligence liability. He needs to explore significant amounts of professional liability insurance and factor that into the cost of doing business. As well, the business would be a marital asset, and you need to figure out what will happen in the event of a divorce. There are many, many issues that should be explored whle thinking about this new venture. You want to succeed, so do lots of homework and planning. Get a CPA on board, a lawyer and a mentor or two in the industry, to help you sort out the important issues.

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Answered on 8/10/03, 1:33 pm


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