Quote:
Originally Posted by fredr123
Consider the question from a potential client's point of view. If you mess something up, can the client seek compensation from you?
If you are a limited company then you may not be personally liable. Without much of a track record to speak of (since you have recently incorporated) and probably few, if any, assets of value held by the corporation there is a greater risk of the client being unable to recover anything from you if things went sideways.
Similar concerns apply should you find yourself going to get a line of credit for your business. The bank will likely require you to personally guarantee the loan in order to be sure someone with some value is on the hook if things don't work out.
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i understand the clients perspective completely. but like you said, being a limited company, i am personally protected but the business accounts are exposed. i've had experience with a few builders who will start a new company every few years in order to protect assets from the older companies.
in my line of work, there is always an engineer who with review and provide their technical analysis. does the engineer not bare thebrunt of the structure design. if so, it leaves my company open to windows, doors and framing errors, which on the grand scale, can be small.
also, if a client comes after my company for something and the company only holds a few thousand dollars, what else can the client do?