KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Liability and your corporate entity / ISC schedule February 9, 2024 ************************ ISC schedule ************************ I'll be at ISC in April and again sponsoring and conducting informative meeting. Vendors who wish K&K to schedule meetings for them should contact Stacy Spector,Esq at 516 747 6700 x 304 or sspector@Kirschenbaumesq.com now. Dealers who want to participate in private meetings with me should also contact Stacy to schedule a time. Meetings [private and group meetings on scheduled topics] will be schedule for half to one hour, without charge, and conducted at the Palazzo Prestige Lounge. Times and schedule is limited so please contact Stacy soon as possible to request a topic or schedule an appointment. ********************** Liability and your corporate entity *********************** Ken This question is about liability exposure. From a legal perspective, does it make sense to maintain the corporate entity with respect to potential liability exposure moving forward? (i.e. does removing the Corporate veil potentially expose us personally to claims by prior customers, the buyer of our accounts, suppliers etc. moving forward?). Danny ************************* Response ************************* You should not conduct business in your own name; you need the protection of a corporate entity, which can be a corporation or Limited Liability Company. Most, if not all of you, should elect Subchapter S status for your corporation. I prefer a corporation to an LLC; something I have opined on in prior articles and won’t get into now. Having a corporation will not however protect you for your own negligence. So if you’re a one man operation, or you are the tech on site making the mistake, you face liability directly, along with your corporation. What you’re not liable for when you operate as a corporation are the mistakes of your employees. You also won’t be responsible for the corporation’s contractual debts, unless you affirmatively guarantee those obligations. There are plenty of business and tax reasons to operate as a corporation that I don’t get into here. Suffice it to say that this is not something to debate; you need to have a corporate entity [or LLC]. ************************ STANDARD FORMS Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
