Corporations and Liability

J

joshtpa

New member
As a business owner and someone that has specialized in insurance for my full career until retiring early recently, I just wanted to share a story that happened locally and give my advice. A local detailer really messed up someones car around my parts. He left some bad scratches. He is now being sued heavily and is most likely going to lose. Just heard this on the local news tonight. For all of you professional detailers out there, I definately recommend incorporating in either an LLC or an S Corp. keep the liability at a minimum. At the same time use your business to buy your supplies and build your biz credit. Setting up a biz costs very little but might save you a fortune in the long run.
 
when you say sued heavily...that would only be up to the cost of repainting the vehicle, correct? possibly a little more if it's an exotic or collector's car and repainting would further depreciate the car?



just curious...and i agree if you are not prepared to replace what you might damage...don't touch it without protecting yourself.
 
You can be sued based on the damage and depreciation of the vehicle if painted. For what it costs to incorporate, it is so well worth it. It keeps people from having to start a business with their own money and sets up net terms accounts for products as well as having some business credit that will not be put against them in debt to income ratio.
 
joshtpa said:
You can be sued based on the damage and depreciation of the vehicle if painted. For what it costs to incorporate, it is so well worth it. It keeps people from having to start a business with their own money and sets up net terms accounts for products as well as having some business credit that will not be put against them in debt to income ratio.
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Thanks for the advice, and I plan on incorporating this summer. By the way I did a search on your new boat purchase, and man that thing is sweet! You must have done pretty well in the insurance business. If you go to Sea Ray website and look at some of the pictures of your boat you'll see good old Savannah, GA in the background of some pictures. Where are Sea Rays made?
 
I bought mine from Marine Max in Clearwater, FL. I wanted the 340, but it is just too much boat for me. I love it so far. Only had it about a month now. Keep it in Tarpon Springs. We are taking it to the Bahamas later this summer.
 
Thanks for all of the questions guys. I hope I got to all of you in a timely manner. remember, business credit can open doors to many things such as clearing personal debt. It is not a toy though, and should be handled with care. It does take time to get to where you want to be, but in the end, it is very much worth it. I know people that have established 200k in biz credit within the first year just following basic rules. It can happen. I would be more than happy to get the ball rolling for people. Let me know if I can help.
 
I am in no way selling anything or spamming anything here. Just offering my 15 years of experience in this arena. The same way someone would offer advice on products or tools. I am retired and happy to be retired. But if I can help, please do let me know.
 
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