Legal Question in Business Law in Pennsylvania

I have a question related to incorporation. I was a flooring contractor (sole proprietor), full time until November of 2009 at which time I took a position for a company that manufactures floor covering installation products. I am in their technical claims department. Being in the department I see many issues that arise years after the installation. As I still do side jobs on a part time basis, I was wondering, if I incorporated now, would I be able to protect my personal assets going forward as well if a litigious situation aropse from a job when I was a sole proprietor?

I do appreciate your input.


Asked on 8/22/11, 5:51 am

1 Answer from Attorneys
Andrew Solomon Law Office of Andrew A. Solomon

First, if you are already employed, are you permitted to do jobs on the side by your employer? Second, if so you probably should incorporate as an LLC (limited liabilited company). It is the simplest and cheapest way to incorporate and would provide you with personal protection, so long as you kept that business separate from your regular finances (separate bank account, separate EIN no.) and don't imtermingle corporate funds with personal funds. As for your last question, it is my opinion that you probably would be personal liable for all work performed at the time you were a sole proprietor. Of course, you would be protected for any work performed after you incorporate.

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Answered on 8/22/11, 12:06 pm


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