Page 142 - Judgment Enforce Course

Judgment Enforcement – The Step-by-Step Course

scalpel. Then his patients can only sue the corporation, not him personally. And, if the

court were to decide in a patient’s favor and award the patient a sizeable judgment against
Dr. Howard Inc, the good doctor can simply fold the corporation and start a new one
later—maybe called Your Family’s Best Doctor, Inc.

Before you scream bloody murder at the injustice of this, let me explain something else.
Another purpose of corporations is to let people take a risk in a business without fully
jeopardizing all their personal assets. People are then more likely to form businesses,
provide services, be innovative, and pay taxes. It works for everyone, including you and
me, except in the case of someone dishonest who uses the corporation to avoid paying
legal debts and obligations.

2 Legal Terms:
You and I are a “natural persons.”

The corporation is just a “person.”

Getting back to our famous Dr. Howard—
From the time he had started his corporation there were two people involved—Dr.

Howard (the natural person) and now the corporation (a
person). Even if he designates himself as the president, he is 2 IMPORTANT
still only “working for” the corporation. He is an employee, TERMS
just as the nurses, hygienists, and secretaries are employees.

However, as president of the corporation, Dr. Howard (the
president) has the power to decide how much Dr. Howard (the employee) should be
making. Chances are he will decide that he should make quite a bit. Perhaps enough to
buy a few personal nice cars, a boat, a lovely home (or two) and a little vacation hideaway.
Still, if the corporation were to be sued, only the corporation’s assets can be touched. The
cars, boats, houses, and vacation hideaway remain out of reach. Get the idea? Yes, it’s

pretty slick.

REMEMBER: Often the owner/member of the corp or LLC is an “employee” of
the same. Then you can garnish his wages from his own corporation.

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