Legal Question in Business Law in California

Husband and wife are married in CA. Husband opens a compounding pharmacy of his own. Years later, wife wants to open her own pharmacy but both parties want to agree this will be wife's sole property. Husband having no interest and no liability in the outcome of business. Husband will potentially be an independent contractor (1099) of wife's business by just providing occassional consultations. Other than income from consultation, husband will not be a shareholder or hold any interest.

How can they limit Husband's interest and liability so that it doesn't ever come back to involve him?


Asked on 2/06/12, 10:05 am

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

My first thought is that insurance is the proper route. That will handle most of the liability issues, if not all; and that's about the only way to be safe from suits, even ones that you'll win, but which can be nuisances and expensive to win. Wife should see to it that she and/or her company have all the requisite licenses. Have an attorney set the business up as a corporation or professional corporation, as appropriate (you didn't say whether wife is a pharmacist or will be hiring one). Speak directly with a business insurance agent or broker and a business attorney.

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Answered on 3/02/12, 12:42 pm


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