|2. A significant percentage of individuals who are in any way impaired while they are present on someone else’s property will consider filing a lawsuit against the property owner or occupant.
3. There are simple, economical steps which business owners and real estate investors can take to minimize the risk to their personal assets.
It should go without saying that any business and any real estate owner should obtain sufficient liability insurance coverage for their premises. In addition, individuals with significant assets should consider obtaining a personal liability umbrella policy of one million to two million dollars through their auto or homeowners insurance agent. This will normally provide adequate protection against personal injury claims.
However, in most cases, business owners should also form corporations or limited liability companies (“LLC”) to own and operate their businesses. The individuals would own shares of stock or owner-memberships in such entities. If proper procedures are followed, the individual owners will be shielded from any liability for company debts or liabilities.
It is also prudent to own investment real estate, either vacant land or buildings leased to others, in an LLC or similar legal entity. This will further shield the individual owner from liability of all kinds.
While each situation is unique, LLC’s are often more advantageous than corporations in terms of tax planning, reducing paperwork and asset protection. The cost of forming either a corporation or LLC is reasonable, and the peace of mind engendered by the protective shield created is invaluable. See your attorney to discuss the specifics of your situation.
To contact Bruce, visit his website at www.juwws.com.