This is Lee Phillips.
I want to talk for twoseconds about a weird topic for a lawyer to talk about.
Yeah, I'm a lawyer.
Don't hold that against me.
And in fact, I'm UnitedStates Supreme Court Counsel.
But the topic is business cards.
What does a lawyer haveto do business cards? Well it's pretty easy, actually.
Whenever you set up acorporation or an LLC, it gives you this corporateshield, this asset protection.
You need to make sure that thepeople that you're dealing with understand that they'renot dealing with you, they are dealing with a company.
One of the ways that youdo that is that company needs to be on a letterhead.
It needs to be onthe business card.
And when you give thatbusiness card to an individual, they need to be ableto see, oh company.
I'm dealing with company.
This guy isrepresentative of company.
Had a case a while back,where the individuals had done some interesting thingsand got in big time trouble.
And the argument was,and the people actually lost the argument, oractually won the argument, it depends on whichside you're on.
But they had not put that itwas a company on the letterhead.
It was John Doe, engineering.
It wasn't John Doe Engineering,LLC, or John Doe Engineering Corporation.
And John Doe happenedto design a building with a swimming pool on top,and the swimming pool failed.
Not a good idea.
They came back and they wentagainst John Doe personally.
And they said, we didn'tknow that this was a company.
It's not even onyour letterhead.
We were dealing withyou, John Doe, engineer.
You can't hide behindthe corporate shield.
By the way, corporateshield corporation, corporate shield LLC,same corporate shield.
You can't hidebehind it, because we don't know who you are.
We thought we weredealing with you.
And I had a case anumber of years ago, big ad agency inLA that had been doing the same thing for years.
They changed to anLLC, and the guys who changed it themto an LLC happened to be one of the biginternet peoples.
And they kind of gave them thepapers and kissed them goodbye.
They didn't bother totell them that they had to change the letterhead.
That they had tonotify the creditors.
That they had to startrepresenting themselves as a company, not just acontinuation of what everybody had been dealing with.
They got in trouble, thecourt took 15 minutes to say no, no, no, no.
You're not an LLC.
You're still a partnership,because these people have dealt with you as apartnership for decades.
They didn't knowthat you are an LLC.
You do not have the right totry and put a corporate shield in between youand the creditors, because they didn't know.
They thought they werestill dealing with you.
So when you set up anLLC or a corporation, it's critical thatyou notify everybody that you've been dealing with.
And it's critical that you haveyour letterhead, your business cards, your web page, everythingreflect the fact that you are a company, notthe individual or not the partnership thatyou've always been.
This is Lee Phillipsjust giving you a little heads up onhow to try and protect that corporate shield when youset up a corporation or LLC in an entity that you'vealready been running under, or even one thatyou're just setting up for the first time, oran entity that you're now dealing with whereyou have changed the nature of the entity.