On Aug 28, 5:24 am, "El Maximo" wrote:
"Ken Finney" wrote in message

...

I'm thinking that they are really leaving themselves open to lawsuits if
someone gets hurt due to a rough landing (or worse).

Someone I know owns a bar. She told me she doesn't carry liability
insurance.

They formed a corporation and lease the space and liquor license to the
corp, but the corp operates the bar. When someone decides to sue, they form
a new corp ready to take over as soon as the 'victim' acquires the assets of
the corp (which is nothing). The old corp goes bankrupt, and the owners
lease the bar to the new corp.

At least in California this does not work. This topic was brought up
in torts class. Someone tried the same thing with his explosives
company and the courts pierced the corporation and the person lost
their personal assets. Basically a corporation cannot be a shell. The
main test is that if a corporation does not have enough insurance and
or assets to cover expected liabilities, it will likely not be
honored.

-Robert