Holding Company - Now or Later? - Page 3
Page 3 of 3 FirstFirst 123
Results 21 to 23 of 23

Thread: Holding Company - Now or Later?

  1. #21
    Senior Member
    Join Date
    Mar 2012
    Posts
    3,287
    So, getting back to the original poster who was going to offer paramedic type consulting. If something happened and he was sued, most likely for a personal injury type of claim, which is common in the medical industry, his corporation may not protect him or his real estate in a holding company.

    I may not be a lawyer, but "I rest my case".

    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  2. #22
    Senior Member
    Join Date
    Feb 2016
    Location
    West coast
    Posts
    517
    Me too, I rest my case.

    I see no need to resile from anything I said in my initial post upthread (or any subsequent post, for that matter). Interposing a corporation between you and your business and other dealings will often serve to shelter your personal assets from execution. But it would be naive to think that use of a corporate vehicle will protect you in every imaginable scenario. I gave one example (that of the negligent mechanic) where use of a company will almost certainly afford the desired protection.

    And, indeed, getting back to the original poster, whose query has become somewhat overshadowed by a tangential debate, I apologize to that person for my part in the sidetracking.

    In his initial post, he said, in part:


    Quote Originally Posted by CWatt View Post
    I'm a recent paramedic graduate and want to open a small business for consulting and education as a means of secondary-income. Down the road I intend to start a medical service provider company as well as own real-estate. I know a holding company will best protect any real-estate assets from litigation originating against the medical service company.

    My question is: should I set-up the holding company network now or wait until I'm in a position to start the medical service company? Does anyone know if I will be creating more legal costs for myself down the road if I wait? (E.g., $500 now vs $1500 if I wait).
    Having re-read his post I have a couple more comments to offer.

    1. "... a holding company will best protect any real-estate assets from litigation originating against the medical service company." If you have Medco for your medical business and Holdco for your real estate and Medco (and not you) gets sued, then Holdco won't protect your real estate assets any more than holding said assets in your own name. Either way, those assets should be secure against any liability found against Medco alone.

    2. I still adhere to the view that incorporating Medco to conduct the proposed business will offer some limited liability protection. Now, that learned poster JAG has opined: "If something happened and he was sued, most likely for a personal injury type of claim, which is common in the medical industry, his corporation may not protect him or his real estate in a holding company."

    All I can say on that score is that on an unknown set of facts, one cannot help but say "his corporation may not protect him or his real estate in a holding company". As for some undefined claim being a "personal injury type claim", I am sure sure exactly what the OP is proposing. He refers to a "medical service company", which could involve treating patients perhaps, hence opening the door to a possible personal injury suit, but I suspect that treating patients is not what is contemplated.

    The OP refers to "consulting and education". Let's imagine that his business gets off the ground and Medco becomes the Sprott Shaw College of paramedicine. It hires instructors and business appears to be booming. But, after awhile, negative reports start flowing in from students and former students about the quality of training offered, misrepresentation as to staff credentials, etc. Some students commence litigation - a class action perhaps - to recover tuition fees as well as general damages. In that kind of scenario, I would say it is very likely that Medco will be found liable, but not the OP personally. Can I guarantee that outcome? No.

    The following is an illustration of the private education institution getting into difficulty. The institution, not its principals, was named and ordered to pay money.

    Lotte Enterprises v. Private Post-Secondary Education et al.
    http://www.courts.gov.bc.ca/jdb-txt/...01bcsc1613.htm

  3. #23
    Senior Member
    Join Date
    Mar 2012
    Posts
    3,287
    The holdco makes no difference whatsoever was my original point (unless, of course, he was sued by something related to the real estate holdings) and the Medco doesn't protect you the way the OP may have thought, in certain circumstances. It seems we agree.

    Looking back over the postings, it's certainly good that I choose to look at the comments only from the informational side and chose not to take offence at some of the word choices made and overall tone.

    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

Page 3 of 3 FirstFirst 123

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •