Legal Question in Business Law in Massachusetts

Legally what, if any, is the criteria for a business to be considered a company

I have a small business and was wondering legally what, if any, is the criteria for a business to be considered a company. I am researching different wholesale vendors and many require you be a company, I have a business license through my town does this qualify?


Asked on 1/16/03, 12:32 pm

2 Answers from Attorneys
Lawrence Graves Coolidge & Graves PLLC

Re: Legally what, if any, is the criteria for a business to be considered a com

It is a rather perverse requirement, but I've seen it before. They want you to have some kind of legal entity (e.g., a corporation, limited liability company) rather than just being a sole proprietorship.

I say "perverse" because the legal entity shields you from personal liability on whatever contract they sign with your company, whereas if they let you remain a sole proprietorship you would have personal liability on the contract.

You can expect to pay somewhere between $500 and $1,000 to have a lawyer form a legal entity for you.

Best wishes,

LDWG

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Answered on 1/16/03, 12:48 pm
Nance Lyons Law Office of Nance Lyons

Re: Legally what, if any, is the criteria for a business to be considered a com

You do not say what kind of business you are in. The companies are probably interested in what insurnace you have to cover you. It is not that expensive to incorporate and it protects you from personal liability in the event of a dispute. Talk to a lawyter

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Answered on 1/27/03, 2:26 pm


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