Ok, now we will talk about how to protect the officers in your corporation or LLC. This next bit of information can also be found on the order forms of http://www.nickspradlin.com .
"When you incorporate or organize your business you are protected as a Shareholder or Member (owner of a company); however, when you act as a director, officer or manager you have to understand there is no personal protection if you are sued. Therefore, it is strongly recommended to have us draft a contract between the corporation/LLC and the the directors/officers for an important layer of protection. "
This protects your president, vice president, secretary, and treasurer of your corporation, or, for your LLC, it protects your CEO (Chief executive officer), VOM (Vice operating manager), your secretary and your CFM (Chief Financial Manager).
Again, I must say I am not an attorney so you should always seek legal counsel.
When I set up my company I made sure that I set up an Indemnification Agreement so that I could have my personal assets protected in case something wrong were to happen. (such as being sued for negligence)
No one wants to lose their personal assets to a business loss. Imagine if you have your own house or your own car and your business gets sued. Without this indemnification, you would place all of those assets into an unnecessary risk.
An indemnification is a document that goes into your corporate kit and acts as a contract between the officers of the company and the company itself.
My opinion, I also don't know why anyone would want to set up a business without this level of protection.
"When you incorporate or organize your business you are protected as a Shareholder or Member (owner of a company); however, when you act as a director, officer or manager you have to understand there is no personal protection if you are sued. Therefore, it is strongly recommended to have us draft a contract between the corporation/LLC and the the directors/officers for an important layer of protection. "
This protects your president, vice president, secretary, and treasurer of your corporation, or, for your LLC, it protects your CEO (Chief executive officer), VOM (Vice operating manager), your secretary and your CFM (Chief Financial Manager).
Again, I must say I am not an attorney so you should always seek legal counsel.
When I set up my company I made sure that I set up an Indemnification Agreement so that I could have my personal assets protected in case something wrong were to happen. (such as being sued for negligence)
No one wants to lose their personal assets to a business loss. Imagine if you have your own house or your own car and your business gets sued. Without this indemnification, you would place all of those assets into an unnecessary risk.
An indemnification is a document that goes into your corporate kit and acts as a contract between the officers of the company and the company itself.
My opinion, I also don't know why anyone would want to set up a business without this level of protection.
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