 Frivolous Lawsuits Cost Businesses Millions Annually
Date: February 28, 2006
Contact: Nevada Corporate Headquarters, Inc., http://www.nchinc.com 1-800-508-1729
Nevada Corporate Headquarters Inc. (NCH, Inc.) offers business owners protection and peace
of mind.
Las Vegas, NV (PRWEB) February 28, 2006 -- According to a survey released by the National Federation of Independent Business (NFIB) Research Foundation, small-business owners rank the "Cost and Availability of
Liability Insurance" as the second most important problem facing small-business owners today. This problem
is a direct result in the dramatic rise of lawsuits filed nationwide in the past five years. Business owners are
scrambling for relief from the cost of both liability insurance and defending lawsuits. In most cases a
corporation or LLC can effectively be used to insulate personal assets against liability. However, certain states
fall short of providing business owners the extent of protection they need, to keep personal assets completely
safe from lawsuits.
According to published reports, a couple recently filed suit against Wal-Mart when the contents fell out of
their bags onto the wife's foot, the couple decided to sue the store for $60,000 for not bagging the groceries
adequately. ("Couple sues Wal-Mart over broken grocery bag," Tribune-Review, January 8, 2004). While
companies like Wal-Mart can afford to deal with these types of lawsuits, this could be ruinous to small
businesses. Small business must find a way to protect themselves and the answer could reside in Nevada.
Regardless of where you conduct business, you can own and operate a Nevada corporation. One of the
primary benefits to incorporating in Nevada is that according to Nevada regulations the "officers and directors
of a Nevada corporation can be protected from personal liability for lawful acts of the corporation." Nevada
Corporations are among the most difficult to pierce the corporate veil, thus keeping the business owners
personal assets better protected than any other state. This pro-business aspect of the Silver State makes it very
advantageous for business owners from all 50 states to form their corporation or LLC in Nevada and still
operate the business inside their home state.
In the race for the White House in 2004, President Bush addressed the negative effects of frivolous lawsuits
on small businesses. "Small business is the backbone of our society. Most new jobs are created by small
business. And when you have junk and frivolous lawsuits that could completely wipe out a small business
hanging over the heads of small business people, it doesn't help. It hurts economic vitality and economic
growth."
One of the main reasons for incorporating is to limit the exposure of your assets to business losses.
Incorporating separates corporate activities from personal assets. This is true in any state. However, Nevada
corporations take this concept to a higher level, making it virtually impossible for creditors and litigants to get
at your hard-earned assets.
About Nevada Corporate Headquarters, Inc.
Nevada Corporate Headquarters, Inc. is the largest incorporator of Nevada based entities having formed more
than 25,000 corporations and LLCs over the past 15 years. To receive a free copy of the 3rd Edition of NCH's
Nevada strategy and secrets book called "The Nevada Edge" call 1-800-508-1729.
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