Legal Question in Business Law in Florida

Business Liability

We are starting up a business and it is a S Corporation here in Fla. It is a limo business. My father has signed for the lease on the limo. How do i protect him from being sued personally if there is a claim against the company.


Asked on 1/08/08, 1:09 am

1 Answer from Attorneys
Matthew Z. Martell Law Office of Matthew Z. Martell, P.A.

Re: Business Liability

You already have limited your personal liability by creating a S-Corp. I recommend that you also put the limo in the name of the business, I advise you to get commercial auto insurance on the limo in the name of the business. Get a commercial business insurance policy also. Also, consider using a fictitious name (i.e.- a D/B/A) that is different than the name of your corporation. Additionally, make your lawyer your Registered Agent of your company. Most importantly, do not commingle business and personal expenses and assets. That is the #1 way for someone "pierces the corporate veil" and sues a shareholder of a S-Corporation personally. However, be advised that piercing the corporate veil is rare.

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Answered on 1/08/08, 12:04 pm


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