Along these lines, we sat with our CPA and lawyer, and they said (in Ohio, anyway, an important distinction) LLC's and S-Corp offer little additional liability protection over sole proprietorships. Of course, I'm not referring to partnership situations, but rather an owner with employees. They both said people sleep better at night, feel protected, all the books recommend it, but case history proves you're just as much on the hook.
I found this surprising, but they both had many many examples to prove it. They both said (and they both would benefit financially from restructuring our business of 20 years) spend the money on the best liability insurance you can get. I spoke with a few other CPA's, and they said the same thing: LLC and S-corps for owner-operators with employees offer no real protection. One said, "you'll feel much safer, you'll be like your fellow business owners, until the day you are sued, and then your lawyer will explain it will still chase you to all the way to your house".
Your thoughts? Did I find the only lawyers and CPA's who feel this way?
Now the tax advantages and disadvantages are a different subject....
