Legal Question in Business Law in Pennsylvania
Restaurant Owner Liability
Is is possible (or advisable) for a small restaurant owner to incorporate a restaurant, bar, and parking lot (all constituting one premises) separately as three distinct entities?
2 Answers from Attorneys
Re: Restaurant Owner Liability
Depending upon your specific circumstances, it is probably possible, but whether it is advisable would mean a pretty comprehensive review of your situation (including tax considerations).
Feel free to contact my office if you'd like to discuss further.
Re: Restaurant Owner Liability
You asked about incorporating 3 related business parts as separate entities to limit liability.
Of course you can do it. The question is how difficult it would be to actually do so and would it work.
In order to survive an attempt to pierce the corporate veil each business must have a legitimate purpose to exist as a separate entity. This would mean each would have to have an arm's length contract with the other sides and also must have a suitable revenue stream to account for its existence.
To me it doesn't sound practical or effective. As a corporate or plaintiff's lawyer I could pierce the veil unless you are scrupulous about you accounting and management practices.
Generally you will be better off making sure you are properly managed and insured then trying to beat a lawsuit that hasn't even been filed.
Regards,
Roger
Related Questions & Answers
-
Law Questions I'm currently in 11th grade.I am deeply interested in becoming a... Asked 11/08/07, 11:57 am in United States Pennsylvania Business Law
-
Used panties for sale Here is an odd question. It it illegal for me sell my used... Asked 11/07/07, 12:53 pm in United States Pennsylvania Business Law
-
Restaurant Law I was in a restaurant last night and ordered a beer. The server asked... Asked 11/01/07, 10:19 am in United States Pennsylvania Business Law