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.


Asked on 2/12/03, 2:24 pm

1 Answer from Attorneys
Joseph Burke Law Office of Joseph T. Burke

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.

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Answered on 2/12/03, 6:07 pm


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