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ANewLevel
01-31-2014, 03:49 PM
Hi everyone, this is my first time posting, so I apologize if this is not the correct thread for this post.

So here's my situation, I'm looking to start my own "home based" business as a sole proprietor. However, I currently rent a place, and my city says that I need the landlord's signature to register the business license. I spoke to my landlord and he is okay with doing so, but he brought up a good question, if a client were to try and sue me, would he or his assets (i.e. house) be clear of any liability associated with my business?

To be clear, I only call this business home based in the sense that the license will use the home address. I will not actually be doing any work from the location.

Please let me know what you all think, thanks!

AlecD
02-03-2014, 09:36 PM
Just have some documentation created and signed by you and your landlord stating that you personally take all liability. Make sure there is a clause specifying that the house,being the property of your landlord, is therefore barred from any legal issues that could arise from the business being operated on said property. That's what I would do anyways, and realistically there should be no reason it is non-applicable.

fredkawig
02-04-2014, 01:09 AM
Definitely use the house address as a second address and not the main business address. Then the owner would have no liability as it is not the main office address but merely a secondary address for other matters like contacting maybe and the like. You should also stipulate in your Business books that only your company or you shall be sued for malpractice which I'm assuming is already understood and need not be placed in your Company's TOS or Books.

AlecD
02-04-2014, 11:49 AM
Definitely use the house address as a second address and not the main business address. Then the owner would have no liability as it is not the main office address but merely a secondary address for other matters like contacting maybe and the like. You should also stipulate in your Business books that only your company or you shall be sued for malpractice which I'm assuming is already understood and need not be placed in your Company's TOS or Books.

NEVER, EVER assume that something is universally understood. ALWAYS have it in writing. For example, everyone knows coffee is a hot drink. But after someone spilled a cup of coffee on themselves and burned themselves, the company was sued for ALOT of money. Ever since then, you see CAUTION:HOT on every cup of McDonald's coffee. Really it's the same concept. We all KNOW coffee is hot, but because it wasn't WRITTEN, someone saw the loophole and made a fairly decent chunk of change from it

pandandesign
02-04-2014, 04:05 PM
When you rent a place as part of the business registration, then the person who owns the property is going to be a liability because you have the owner to sign for you, that means he is going to be responsible for that matter. I'm not sure whether or not you should have a second address because that then why don't you use that place instead. I would say that if you have the person to sign the paper, then that's the one whom those people will come after. I would say unless it is your place, then the rental property becomes a liability because you've gotten the writing. I would check with a lawyer to make sure about this situation.

Lostvalleyguy
03-06-2014, 02:01 PM
Assuming the lawsuit is against the business, the location you rent is not an asset of the business and therefore not subject to legal action. (It doesn't mean someone wont try). There would be no commercial rental property were this not the case. It should be no different than renting an apartment - if you as an individual are sued, the apartment owner isn't assuming any liability for housing you. If you are using the location is some way, shape, or form that is creating the specific issue, that may be a problem. For example, you use your apartment (with the owner's permission) to test high powered stereo systems - your neighbors sue because they cant live there, then you and the knowing owner may be liable.

eppie
03-12-2014, 07:48 AM
Hi everyone, this is my first time posting, so I apologize if this is not the correct thread for this post.

So here's my situation, I'm looking to start my own "home based" business as a sole proprietor. However, I currently rent a place, and my city says that I need the landlord's signature to register the business license. I spoke to my landlord and he is okay with doing so, but he brought up a good question, if a client were to try and sue me, would he or his assets (i.e. house) be clear of any liability associated with my business?

To be clear, I only call this business home based in the sense that the license will use the home address. I will not actually be doing any work from the location.

Please let me know what you all think, thanks!

But why would you use that address if you're not doing any work from that location? Anyway, regardless of what happens "in the background", officially - your business address is still the one that you are renting.

I think that whatever you're planning to do (or not to do) with the place should be in black and white. It's a must that you have a formal agreement or contract as it will protect not only your landlord but you as well. :)

SeanCole
11-01-2014, 06:07 AM
Your owner is right if anything will happen what he will do, as you have given the address of his home. First try to convince your owner and tell him about each and every thing about your business. If you are doing a good business then there is no chance of loss or sue. Make an agreement with your owner that if anything will happen then the owner is not responsible. Don't give the address of your home, give your pan card as a proof.