Confused about which form of business...

[Kholland9636]

Tennessee

Ok, here is the delima, My husband and three of his friends are looking to start a business. This business will consist of giving seminars on personal security in the workplace. They are confused on which form of business they should form. So we have a few questions:

1. Can all four of them form a DBA?

2. If not, which form of business should they take, all four individuals are worried that they can get sued if someone gets hurt or killed if he/she misapplies their advice (does that make sense).

3. Can they be sued if an individual takes their seminar and then is in a situation where he/she applys the lessons learned in the seminar, and ends up getting hurt, Are they liable for that occuring?

They were also looking at a partnership or LLP but they will be the ones giving the seminars, there will be no other employees besides the four of them. (Depending on which form of business they take, they will need a lawyer and accountant too) Right now I am responsible for the secretary/receptionist/bookeeper/Advertising parts of the business.
I think that is about it.
There is not a lot of money for starting a corporation, its basically wanting to be ran out of the house until they see a profit from the company.
THey realize that they will probably have to speak to a lawyer eventually to figure this out, but I was hoping to get some advice on here first, to pass on to them...

Can anyone help me. Please.

Thanks
Kimberly

 

[seniorjudge]

1. Can all four of them form a DBA?

A: Yes.


2. If not, which form of business should they take, all four individuals are worried that they can get sued if someone gets hurt or killed if he/she misapplies their advice (does that make sense).

A: It depends on what their tax CPA and their business lawyer recommends.


3. Can they be sued if an individual takes their seminar and then is in a situation where he/she applys the lessons learned in the seminar, and ends up getting hurt, Are they liable for that occuring?

A: You can be sued for anything at any time for any reason. No one can see into the future.





It's all about taxes and liability.

Get lots of liability insurance.

Google pierce corporate veil for more info.

 

[Kholland9636]

Thank you for the quick response.

One more question, Im not sure where to ask this one.

Can they be held liable if a situation occurs as described above? Everyone is worried that if they get sued that their personal assets can be taken. I understand they can, unless you go limited or corporation. But would they be held liable? Wouldnt that be like taking a Karate classes and suing the Karate school because you got hurt in a fight? Would the school be held liable in that situation.

Thanks again for the response.

Kim