Piercing only matters when there are assets behind the entity to get to. It sounds like he does not have 50k cash to plunk down, so most of his assets are probably in his house and retirement, for the most part neither of which you can get to in Texas, either in tort or contract, unless the contract is a mortgage with the house listed as a security. If there are attachable assets, they can be gotten to, regardless of the form he chooses, in the case of a tort. And he is going to have to kiss any note or lease he signs, so the form won’t matter in a contract case either. I’ll leave it to you guys to argue about tax consequences (I don’t do tax), because, for the most part, that is all that really matters in choosing the form (unless he has partners or investors, or wants the shield this particular asset from other creditors, which is a whole other ball of wax). Also, I agree insurance is a very good idea, and that it would be required in a commercial lease, but if the shit really hits the fan, that’s when the insurance company pulls out the coverage lawyers and he finds out how all those little exclusions work–I can tell you right now they don’t work in his favor. Frankly, unless he is experienced or has good representation, where he is really going to get b-fu*ked is negotiating a commercial lease with a bunch of sharks, not in the form of entity he chooses.
Good luck, opening a business is risky. [/quote]
I love insurance. “Man, my life went to hell, but at least I have insurance!”
Then you look at the coverage terms: “In the event your Life goes to hell (an “Incident”) we will pay to you enough money to repair the damage caused by the Incident, provided such Incident is not an Excluded Incident”
“Definitions: ‘Excluded Incident’ - any event in which your Life goes to hell.”[/quote]
I am no fan of insurance companies, but typical a CGL (“Commercial General Liability” or “All Risks”) are on state-mandated coverage form. (Look to see if the policy is from an “Admitted” Insurance company in Texas, for example.)
The thing he’d get in a gym are: dipshits hurting themselves, fights, and rapes.
These are square under a CGL policy.