If you have either a customer, an employee, or a supplier, then you need to operate as a corporation or limited liability company. The idea is to keep your personal assets, retirement and other savings, and debts completely and legally separate from debts and economic risks of your business. Just the attorney's fees and expenses defending against a lawsuit by a customer or employee could cost you all the equity in your home and all your savings. So keep them separate.
Summary. The January 12, 2015, case of Grand Prospect Partners, L.P. v. Ross Dress For Less, Inc., upheld a cotenancy clause, which provided that the tenant was not required to move in and open for business, both if a certain percentage of the retail square footage of the shopping center was not open for business, and if two named tenants were not open for business in their specified square footages of space. The cotenancy clause also allowed the tenant to not pay rent if either test stopped being met, and to terminate the lease if the breach were not cured within twelve months. The trial court refused to enforce the cotenancy clause, resulting in a $4.7 million judgment. The Court of Appeal reversed, allowing Ross to terminate the lease, but making it pay rent for the twelve months it retained control of the leased space, neither using it nor allowing the owner relet it.
You have just moved into your new home. You read books and articles about how to buy a used home. You hired a well-recommended licensed Realtor to help you find and buy your home. You hired a home inspection company and a general contractor recommended by your Realtor to inspect the home. You read all the disclosures and reports. And still there's a problem.