Originally posted by bassrocker4u2
incorporating is a great idea. this will cover your butt in case of a lawsuit. basically, the corporation can be sued, but your personal assets cannot be touched. there are other positive points as well.
well, yes and no. incorporating may - should - protect you from creditors. but if the seller or lessor owed sales or withholding taxes, the respective taxing authority might well grab up the property to satisfy the unpaid taxes. and no incorporation that i know of will shield you from these agencies.
i had a friend who sold his restaurant business. a year or so later he had to take it back when the buyers defaulted on some of the purchase notes. to his horror, when he had successfully foreclosed, the irs came after the place to recoup unpaid payroll taxes.
the moral is that the previous posters are absolutely correct: get a lawyer and an accountant and have the deal vetted down to the last detail.
FYI:one other thing, not directly relevant to this thread, but something that not everyone knows: THERE'S NO SUCH THING AS PRIVILEGED COMMUNICATION BETWEEN YOU AN ACCOUNTANT AND HIS CLIENT. unlike your attorney, your accountant can be hauled up to testify against you, and, unless he wants to face contempt and/or perjury charges (i'll give you looooong odds on that one) he'll have to rat you out. so don't go out for a drink with your accountant and start shooting off your mouth about what's in your safe deposit box.