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CalAttorney2, Attorney
Category: Legal
Satisfied Customers: 10244
Experience:  Civil litigation attorney for individuals and businesses.
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My friend and I are starting a dog training business after

Customer Question

my friend and I are starting a dog training business after many years of teaching classes together. We are trying to determine what our personal liabilities are if we establish a general partnership. We understand the financial liabilities, but need to know if our own personal assets can be in jeopardy if we are sued for, say a dog bite or aggression incident. We will have an insurance policy in place to cover such incidents.
Submitted: 2 years ago.
Category: Legal
Expert:  CalAttorney2 replied 2 years ago.
If you set up a "general partnership" your personal assets will be liable. However, if you set up an entity such as an Limited Liability Company (LLC) or a corporation, your personal assets will be protected from liabilities created by the company (you will still be liable for liabilities created due to your own individual actions - for example, a shareholder of a corporation driving a corporate car that is in a car accident is still liable for the accident as the driver of the car, but he is not liable for the corporation's debts).I always recommend that businesses take advantage of a business law attorney to help them organize their organization, it costs a little bit of money to do this, but using an online document service to create your documents will not allow you to take full advantage of the benefits and opportunities offered by these business entities - especially an LLC which is designed to be very flexible to meet your operating needs and the goals of the organizer's business plans.As with all business operations, I do recommend working with an insurance broker to find insurance or bonding - you can pass on the cost for this as part of your fee to your consumers, but it is generally a very small price to pay and in the event of a loss, the insurance will provide you with both indemnity (payment for a loss) and defense (an attorney to represent you).I do wish you and your business partner the very best of luck in your business venture.