Legal Question in Business Law in Texas

Organization to Minimize Personal Liability

The basic question is what company structure will minimize personal liability, BUT also allow an owner to represent the company himself in court for Forcible Entry/Detainer and/or debt collection purposes.

Apparently corporations (incl LLCs) MUST be represented by an attorney in Justice courts in Texas.

Shooting from the hip I thought a limited partnership with a corporation (or LLC) as the general partner and myself as a limited partner.

Accounts would be assigned to the partnership and I as a partner could represent the partnership in court (I think). Any liability would pass to the partnership and from there to the general partner, which as a corporation would shield its shareholders (me) from personal liability.

Does this sound viable or should I refrain from attempting to practice law ;-) ??

Thanks!


Asked on 12/19/04, 2:02 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Organization to Minimize Personal Liability

As soon as you appeared to represent the limited partnership as a partner, you would go from a limited partner to a general partner and lose your shield against personal liability.

A corporation or LLC doesn't need an attorney to represent it in a forcible detainer action. An agent can do so.

Debt collection is entirely different. There any legal entity must be represented by counsel, other than in Small Claims, except for a general partnership or a sole proprietorship, and there personal liability is up front. A corporation need not be represented by counsel in Small Claims (see Government Code Sec. 28.003).

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Answered on 12/20/04, 10:16 am


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