Legal Question in Business Law in Ohio
sole proprietor vs corp
Is it true? If I am married and share a great deal of assets, all in my wife�s name (not mine). Then continue on as a construction sole proprietor, (I personally own nothing) we would effectively have the same amount of protection or better, if we would have changed my status to s-corp. In effect if someone wins a judgement against me, there�s nothing to get from me. can they go after my wife�s personal assets? Like a house, car, boat or other property.
1 Answer from Attorneys
Re: sole proprietor vs corp
You may be uncollectible if you have no assets in your name and no, assets in your wife's name are uncollectible. However, if your business was a corporation or limited liability company, then a Plaintiff could only sue these entities (with limited exceptions). Otherwise, you would still be sued personally as a sole proprietorship and a judgment could be obtained against you personally. You may not have assets, but a judgment against you would harm your credit and potentially could force you into personal bankruptcy. To avoid this situation, and to avoid personal liability, I would incorporate or set up a LLC.
Related Questions & Answers
-
Slander I have been aproached by my district manager that 3 customer complaints have... Asked 1/24/03, 9:41 pm in United States Ohio Business Law
-
Similar names, completely different businesses I have recently launched an internet... Asked 1/09/03, 12:19 am in United States Ohio Business Law
-
Dissolution of corporation ca you tell me which ohio state form for dissolution of... Asked 1/07/03, 7:47 pm in United States Ohio Business Law
-
Pole Barn floor gone bad A local construction company put a pole barn and concrete... Asked 12/18/02, 8:08 pm in United States Ohio Business Law
-
Blaze at gas station lady threw a cigarette into what she thought was water, but it... Asked 12/04/02, 1:32 pm in United States Ohio Business Law