I've been receiving a lot of business legal questions as of late and via Twitter. If you have a question about a legal issue, ask an attorney or send in the topic. I would be happy to provide you with a generic answer and you can take that information further with a legal review of your specific circumstances.
#1. An LLC will always protect your assets. Forming a corporation or an LLC does provide some protection, but it’s far more limited than you realize. In most cases, if someone really wants to go after your personal assets, not only can they pierce your business entity, they will.
#2. You’re liable for damages due to injuries on your property. This couldn't be further from the truth! You’re not responsible for the negligence, clumsiness, stupidity, or criminal acts of others- period! I don't care if this happens on your property, you're not responsible for it.
#3. A contract has to be complicated. A great contract is to simply communicate the terms and intent the parties agree to. That’s what minimizes disputes and litigation after the fact. You don’t even need an attorney to negotiate and draft a legal agreement. If you note all the facts, costs and a cancellation policy- you should be good. When contracts build in loopholes, you should be concerned.
Business is complex enough. Knowing what is a myth and what is fact will help you navigate your way to success!