Legal Question in Employment Law in Arizona

I am currently employed with a non-compete clause. My interest is to start a business that is not directly competing with my employer but offers a service component that they provide, e.g. marketing services. Would an LLC protect me? The services I would offer would be original ideas.


Asked on 9/22/10, 3:02 pm

1 Answer from Attorneys

Blake Simms W. Blake Simms, P.C.

Thank you for the inquiry. Forming a limited liability company through which to provide services will not assist you avoid the consequences of a non-compete. If the services you provide do not compete with those your former employer provided, you won't have a problem. If your employer perceives there is competition, the L.L.C. will not provide any sort of shield. The only difference the L.L.C. would make is that the employer would, rather than simply suing you for an alleged breach of the non-compete agreement, also bring suit against the L.L.C.

The real issue will be the precise terms of the non-compete agreement. As your posting suggests, the services you provide will also be of critical importance.

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Answered on 9/27/10, 3:52 pm


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