Originally Posted By: joconnell
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I'm chiming in to expand a little bit, but the best advice has already been given... sit down with your attorney.
It is a common misconception that forming a business as a corporation relieves the owner from liability in a legal negligence case. Since many home inspectors are both owner and sole operator of the firm, however, this is not the case. If a mistake is made that causes injury to the client, the client has the right to pursue damages beyond a suit against the corporation.
"In such a case, the injured party can sue both the business and the negligent individuals, bypassing the limited liability of the corporate form." (credit Pracitcal Financial Management, 3rd edition).