Author Topic: OK, we're doing it  (Read 2136 times)

Offline tschmidlin

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Re: OK, we're doing it
« Reply #45 on: July 16, 2012, 11:50:21 PM »
Just waiting on the feds, and we had to modify our brewer's bond, as it's in the name of the company, but we are a sole proprietorship, so it has to be in the name of the owner, not the company.  New bond form sent on Friday........
As a sole proprietor you (as a individual) are fully responsible for your company liabilities.
Are you aware of this?
Yeah, I think you want to set it up as an LLC, even if you are the only person working there.

Have you read through this mic?
http://bls.dor.wa.gov/ownershipstructures.aspx
Tom Schmidlin

Offline micsager

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Re: OK, we're doing it
« Reply #46 on: July 17, 2012, 08:20:04 AM »
Just waiting on the feds, and we had to modify our brewer's bond, as it's in the name of the company, but we are a sole proprietorship, so it has to be in the name of the owner, not the company.  New bond form sent on Friday........
As a sole proprietor you (as a individual) are fully responsible for your company liabilities.
Are you aware of this?

Oh yea, well aware. 

Offline nateo

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Re: OK, we're doing it
« Reply #47 on: July 17, 2012, 09:48:32 AM »
Yeah, we're an LLC and we keep our money in a corporate trust. If you break the corporate veil (for instance by using corporate money as personal money) then even if you're set up as an LLC, you can still be held personally liable.
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Online Thirsty_Monk

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Re: OK, we're doing it
« Reply #48 on: July 17, 2012, 06:54:56 PM »
Just waiting on the feds, and we had to modify our brewer's bond, as it's in the name of the company, but we are a sole proprietorship, so it has to be in the name of the owner, not the company.  New bond form sent on Friday........
As a sole proprietor you (as a individual) are fully responsible for your company liabilities.
Are you aware of this?

Oh yea, well aware.
I do not mean to scare you or anything.
Good luck.
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Offline anthony

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Re: OK, we're doing it
« Reply #49 on: July 17, 2012, 08:07:11 PM »
Yeah, we're an LLC and we keep our money in a corporate trust. If you break the corporate veil (for instance by using corporate money as personal money) then even if you're set up as an LLC, you can still be held personally liable.

Be careful here. Breaking the corporate veil is a legal term set aside for when a judgement or a preceding pierces the veil. Like most legal things, there is a factor test involved that guides a judge into actually deciding whether or not to do it. Using the corporate bank account as your personal bank account is certainly a factor that will be counted against you but I've never heard of any case law, at least in my state, where it was the only factor. There are something like 10-12 other factors.

This also really depends on your state. In Illinois for instance, our LLCs are seen as pretty strong and it is very rare for liability to pass through unless the managers were already doing something illegal. But your state may very.

I'm not a lawyer but I'm married to one. And a different lawyer is one our founding partners (and a manager of our LLC). And as alluded to in the other posts, starting an LLC for a business dealing in the alcohol industry is a very good idea.
« Last Edit: July 17, 2012, 08:10:13 PM by anthony »

Offline nateo

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Re: OK, we're doing it
« Reply #50 on: July 18, 2012, 04:54:43 AM »
Be careful here. Breaking the corporate veil is a legal term set aside for when a judgement or a preceding pierces the veil. Like most legal things, there is a factor test involved that guides a judge into actually deciding whether or not to do it. Using the corporate bank account as your personal bank account is certainly a factor that will be counted against you but I've never heard of any case law, at least in my state, where it was the only factor. There are something like 10-12 other factors.

I didn't mean to imply that it was the only factor. Using corporate money for personal use is something I see happen a lot, and not a great idea, from a liability standpoint or from an accounting standpoint. When you get taken to court, if you can't show that you're a "proper" corporation, you may be held personally liable.

Since you're dealing with alcohol there's a chance some zealous neo-Prohibitionist lawyer could sue you for the actions of your customers. In the town I grew up there was a case where a bar owner was sued because he served a guy who drove drunk and killed someone. The bar owner won, but it could've gone the other way.   
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Offline anthony

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Re: OK, we're doing it
« Reply #51 on: July 18, 2012, 08:40:00 AM »
In Illinois, the Dram Shop act is particularly problematic with regards to that scenario.

Offline micsager

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Re: OK, we're doing it
« Reply #52 on: July 19, 2012, 08:05:59 AM »
Just waiting on the feds, and we had to modify our brewer's bond, as it's in the name of the company, but we are a sole proprietorship, so it has to be in the name of the owner, not the company.  New bond form sent on Friday........
As a sole proprietor you (as a individual) are fully responsible for your company liabilities.
Are you aware of this?
Yeah, I think you want to set it up as an LLC, even if you are the only person working there.

Have you read through this mic?
http://bls.dor.wa.gov/ownershipstructures.aspx

Yep.  Plus I have a degree in accounting, so while what we're doing may not be the best, it is what it is......


Offline nateo

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Re: OK, we're doing it
« Reply #53 on: July 19, 2012, 08:24:40 AM »
In Illinois, the Dram Shop act is particularly problematic with regards to that scenario.

Yeah, those laws are really stupid, unless you also require bar owners to administer BAC tests before serving each round of drinks. If the person ordering the drinks can't use sound judgment, how can the bartender be expected to have sounder judgment without any objective criteria?

Personally, I think every car should have a mandatory breathalizer built in, but I think that'd be a hard sell for all the people who like driving while drunk.
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