# Forming a Corporation???



## DetroitDuramax (Jan 10, 2005)

I am not trying to get into trouble with this question. I was told by a few plowers that if I set up a corporation I don't need insurance well kinda. Insurance is still needed however insure is not required. They along with every other plower I have talked to have never herd of a plow driver being sued over slip fall. So they said I should form a corporation it costs $150-$200 then if you do get sued the corporation declares bankruptcy. This sounds really dangerous. They said alot of plowers do it now and you declare nothing as assets of the corporation so they can't even get your truck. The corporation bankruptcy dosen't hurt your credit rating etc. I am a first time plower and won't have very many accounts mostly residental so $1500-$2500 extra insurance is kinda outta reach right now. Any ideas? I have also been told you can get bonded just for plowing snow not sure if its a Michigan thing?


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## glenspot (Aug 11, 2004)

I am guessing here, but I suppose you're right...

IF... you are willing to let your first law-suit be the end of your corporation. Like you said, if you DO get sued, and they win....say the judge or jury awards them $150,000. Your corporation declares bankruptcy and you're out of business. Well, THAT company is out of business. Because you could just start up fresh again, right?

There are always several ways of doing business. And everyone is right in their own way. People do run businesses for their own personal gain, and not for the betterment of the business. I know someone who own a company that is ALWAYS in 120-days. The banks are ready to repo cars and vehicles, they refinance their debt every couple of years. Payroll checks bounce from time to time. Is this company in danger of closing? No. They make PLENTY of money. But the owner takes a LARGE cut off the top. (The PYF method of doing business...Pay Yourself First) Do they not get any customers because of what they do. No. They have plenty of customers. But the difference between the company this guy operates and maybe MY company.. Is that I want my company to have a good reputation, The guy in my example is more interested in getting rich. 

Is he doing things WRONG? Well. No. Not REALLY. Not the way I would do them. But its his choice how he runs his business. He will no doubt be rich long before I am. 

Point to this answer.... is . Yes. You can DO anything you want to. But is that how you want to operate? Do you want to be one lawsuit away from having to close up shop? Also, what about the NON-slip fall lawsuit. What about the old lady that hit a school kid that came out from behind a big snow pile you left. The distraught parents sue you because of their loss. The lady sues you because of her emotional distress. And they don't just sue the company, they sue YOU as the driver and your negligence.

Things to think about.

Glen


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## PSDF350 (Jul 30, 2004)

i'm no lawyer but i would think that just becuase you are incorperated wont help if your corp dont own the equipment you are using. becuase they (courts) will look at situation and realize your corp isn't real just a front.


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## justme- (Dec 28, 2004)

Incorporating does get you some benifits, as does a Limited License Corporation, but don't ask here- ask a lawyer that specializes in business law. If you incorporate Deleware is the cheapest state to do it in. Some responsibility is removed from you if you inc. but not all. Talk to a lawyer.


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## dforbes (Jan 14, 2005)

*corporation*

justme is right, talk to a lawyer. That being said I think they are wrong. All business assets will be taken. Your truck, your plow, computer,desk ect. anything that you have ever shown that you use in your business. It can help keep some of your personal assets from being taken. But lets say a little kid is sled riding and runs under your truck. You got no insurance, and mom and dad need money to pay the hospital bill. They will sue the corporation and you. Who knows what a jury would award them. You could loose everything.
Dennis


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## somm (Oct 18, 2004)

We opt for the liability insurance at only $115 a month for a million in coverage from American Family. We've never had a claim because of the following language in our written contracts (never do business without making them sign a contract of this nature, at least). To be a sub on decent commercial contracts you need liability ins., also to bid your own company's work to commercial and saavy posh residential accounts, you need it because they all want your insurance company to be the one to fax in the Certificate of Insurance incase your plow operator colllides with their central ac or heat pump or $15,000 coded-entry, wrought iron gate, or the 4 puppy dogs or kids sled/run right out in front of you.

enter your company name

_________________is a fully insured, licensed, and taxpaying company which fully indemnifies and agrees to hold harmless Customer or Customer's Appointees from any and all Workman's Compensation or Personal Injury Claims ever arising from ___________________Staff or Appointees maintenance operations described herein upon these premises.

Because the traversing of any area maintained or not maintained by us is done entirely at customer's or customer's clientele's Own Personal Risk, Customer or Customer's appointees fully indemnifies and agrees to hold harmless ______________________or it's appointees from any and all claims by Customer or Customer's appointees ever arising from Personal Injuries sustained by Customer or Customer's appointees or clientele.

Customer fully indemnifies and agrees to hold __________________harmless for any and all pavement or concrete surface-damages ever arising from the ordinary performance of our Snow Plowings or Deicer Pellet Broadcastings. This kind of damage is solely attributable to one or more of the following factors: improperly cured pavement or concrete surfaces; deficient grading or safety barriers; deficient pavement surface coatings, overseals or underlays; and is ultimately the type of damage which can be completely minimized by the Customer or Customer's appointee's proper engineering of pavement or concrete materials, safety devices, or coatings/seals all being regular, preventive maintenance procedures by the Customer to minimize any abrasions ever rendered by our steel-bladed snow plows or corrosion from Deicers.

hope that helps with the big picture


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