Are personal assets safe if I do not incorporate my Massachusetts business?

Pete (Guest) on Wednesday, November 14 2012, 09:26 AM
I would like to know if I must incorporate to protect my property and ensure that I cannot be sued for my personal assets. Do I protect my assets by selecting a business entity or through insurance?
1 response Add Yours
       
  •  
    Replied by Attorney Howard Goldman on Wednesday, November 14 2012, 09:46 AM · Hide · #1
    The simple answer is “no” your personal assets will not be safe. Sole proprietors and general partners in a partnership are personally and jointly responsible for all the liabilities of the business such as loans, accounts payable and legal judgments. In a corporation, however, stockholders, directors and officers typically are not liable for the company’s debts and obligations. They are limited in liability to the amount they have invested in the corporation. Insurance can help protect your personal assets, but you would not have insurance coverage for all types of debts a business may have. For example, if you sign a lease and then default on the payments, most insurance policies would not cover this debt. There are other legal vehicles other than incorporation which could also help protect your personal assets such as a limited liability company and/or a limited liability partnership. You should meet with an attorney to discuss the best vehicle is to protect your hard earned personal assets.
Your Response

Top Massachusetts Attorneys Ready To Answer Your Questions

1
Attorney Michael Franklin
Attorney Michael Franklin
Divorce, Criminal Defense, Family Law
2
Attorney Eric Schutzbank
Attorney Eric Schutzbank
Divorce, Criminal Defense, Family Law
3
Attorney Howard Lewis
Attorney Howard Lewis
Divorce, Family Law
4
Attorney Christopher Shannon
Attorney Christopher Shannon
Divorce, Trial & Litigation, Criminal Defense
5
Attorney John Dugan
Attorney John Dugan
Estate Planning, Elder Law, Wills & Probate
6
Attorney Alan Fanger
Attorney Alan Fanger
Trial & Litigation, Wills & Probate
7
Attorney Margaret Cross-Beliveau
Attorney Margaret Cross-Beliveau
Estate Planning, Elder Law, Wills & Probate
8
9
Attorney David Jensen
Attorney David Jensen
Estate Planning, Real Estate
10
Attorney Edward Cannon
Attorney Edward Cannon
Business Law, Real Estate
11
Attorney Stephen Morte
Attorney Stephen Morte
Divorce, Criminal Defense, Personal Injury
12
Attorney Austin Joyce
Attorney Austin Joyce
Trial & Litigation, Personal Injury
13
Attorney Joseph Leone
Attorney Joseph Leone
Divorce, Criminal Defense, Family Law
14
Attorney Michael Akerson
Attorney Michael Akerson
Business Law, Employment Law, Trial & Litigation
15
Attorney Craig Ciechanowski
Attorney Craig Ciechanowski
Business Law, Trial & Litigation, Real Estate
16
Attorney Jack Merrill
Attorney Jack Merrill
Employment Law
17
Attorney Bruce Watson
Attorney Bruce Watson
Divorce, Criminal Defense
18
Attorney Chesley Oriel
Attorney Chesley Oriel
Business Law, Real Estate
19
Attorney Kenneth Simmons
Attorney Kenneth Simmons
Estate Planning, Elder Law
20
Attorney Liam Floyd
Attorney Liam Floyd
Trial & Litigation, Personal Injury