I run a business, it is a sole properitorship. There aren’t many assets in the business (it is a coffee shop)
We also own a home that is in both mine and my husbands name. Is there anyway that this business could it affect our house (it is worth about $320,000).
Thanks.
posted by Questions @ 7:21 am
At September 2, 2008 |
12:17 pm
, Barton Goth GCO Bankruptcy Trustees Said...
If you are unable to make a go of the coffee shop and build up a number of debts in the process, because you are running things as a proprietorship your assets are not protected (i.e your creditors may go after your house.
This is due largely to the type of business you have set up. A proprietorship is not a separate legal entity, you and the business are the same thing. So if there are debts in the business those debts really are not different than personal debts and therefore your personal assets would be at risk.
From the sounds of it you may want to talk to a lawyer and explore some of the benefits of running things under a corporation as then you may be able to achieve some of the personal protection it sounds like you are interested in.
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