Incorporate Your Sole Proprietorship?

I was crusing around Chesterfield running errands and listening to the radio when I heard an advertisment for service company that helps people incorporate their small businesses, for a fee. What could happen if you don't take advantage for their assistance? According to them, you could lose everything you own!

I got bad news for all you sole proprietors with no employees. Incorporation will protect you from just about nothing if you incorporate and you're the only employee. You see, when an employee messes up and damages a customer, the customer sues the employer AND the employee. Usually, the employee has zilch so, usually, the plaintiff goes after the employer's deeper pockets.

But, if you are the only employee of the corporation you own and a customer (or anyone else) is damaged by your action, then YOU are still on the hook. Oh, the horror! What will you do? What can you do?

Answer: Buy liability insurance.

Why do people have a lower opinion of politicians than of insurance companies?

Mark Lindquist is a hero. He was injured on the job -- in Joplin, Missouri during the tornado on May 22, 2011. His injuries and his characterization as a hero came from his performing job related duties during that tornado.

According to Accident Fund Insurance Company of America, Lindquist isn't entitled to Workman's comp, "based on the fact that there was no greater risk than the general public at the time you were involved in the Joplin tornado."

So, that outfit would deny compensation to delivery truck driver, "based on the fact that there was no greater risk than the general public at the time you were involved in that traffic accident?" It makes you wonder about the validity of this "insurance" company's denial of 7 other claims from injuries received during the tornado.

See the details here.