Starting INC with partners, other business still has one owner AND a legal case

[StuckinBiz]

What is the name of your state (only U.S. law)? Az

 

[quincy]

What is the name of your state (only U.S. law)? Az

More information is needed. Thanks.

 

[StuckinBiz]

It was a case from the first year, 2014, not knowing all the legality side. Anyhow it’s a service rendered and client was dissatisfied now they’re suing. Are the assets at risk for the business or personal? Is it related to the newly INC?

 

[Zigner]

It was a case from the first year, 2014, not knowing all the legality side. Anyhow it’s a service rendered and client was dissatisfied now they’re suing. Are the assets at risk for the business or personal? Is it related to the newly INC?

They may be - you should consult with a local attorney.

 

[quincy]

It was a case from the first year, 2014, not knowing all the legality side. Anyhow it’s a service rendered and client was dissatisfied now they’re suing. Are the assets at risk for the business or personal? Is it related to the newly INC?

Assets transferred from an old company to a new company can be vulnerable in a suit against the first company, as can be personal assets, depending on facts.

Is that what you are asking?

 

[StuckinBiz]

Yes how can it be protected? Like the house, savings, personal assets?

 

[Zigner]

Yes how can it be protected? Like the house, savings, personal assets?

If you're already being sued, then you can't spirit away the assets to avoid having them attached in some way. You should have an attorney on board already.

 

[quincy]

Yes how can it be protected? Like the house, savings, personal assets?

I am not sure there is much you can do to protect your assets from a suit after the suit has already been filed.

Did you/do you have insurance? You can review your business and personal policies to see the extent of your coverage.

How much is your former client looking to recover in damages? Do you have a defense to the claim? Have you spoken to a lawyer yet?

 

[StuckinBiz]

Just trying to save the assets from being jeopardized and the company. No lawyer involved. Would a lawyer help even though it is in the pretrial step?

 

[Zigner]

Just trying to save the assets from being jeopardized and the company. No lawyer involved. Would a lawyer help even though it is in the pretrial step?

How much is the former client suing you for?

 

[StuckinBiz]

Possibly 10k

 

[Zigner]

Possibly 10k

If you've been sued, there is a dollar amount listed.

 

[quincy]

Just trying to save the assets from being jeopardized and the company. No lawyer involved. Would a lawyer help even though it is in the pretrial step?

Your insurance might cover $10,000 in damages. Check your policies and contact your insurance agent.

Good luck.