Owners of Triple Threat Inc., thought they protected themselves by forming a corporation in which only their investments would be at risk in case of failure. They got stuck because they didn't look, at least to Cheesecake, like a corporation at all. Results can be the same when owners, to avoid personal liability, organize as limited partnerships, limited liability partnerships or limited liability companies. For owners of such companies, everyone, creditors and customers, should know exactly what they're dealing with. Business cards, letterheads, invoices, statements, contracts, sales literature and the like should be as clear as possible about the form of organization in which you choose to do business.
Lawyers are usually afraid of partnerships.
Clients should be careful as well. Martin Paskind is an Albuquerque lawyer. His practice emphasizes legal services to small businesses. P.O. Drawer J, Albuquerque, N.M. 87103. This column is not intended to provide legal advice to any specific person, or with respect to any particular problems or situations.