Legal Question in Business Law in Massachusetts

I live in my parent's house, and I just wanted to be sure that my parents would NOT be liable if in the extremely unlikely event someone sued my business (it would be a small online-based business). Could it be possible for someone to go after my parents since I am technically "operating" in their house? Or not does it not work like that because the business is in my name and not theirs?

Asked on 2/23/17, 3:35 pm

2 Answers from Attorneys

Alan Pransky Law Office of Alan J. Pransky

Liability in business relating to business transactions has nothing to do with the premises you operate from. Of course you can be sued for your own actions such as breach of contract, discrimination, negligence, etc. If your parents do not invest in your business, operate your business, or own a piece of your business then they should not be able to be sued for something you do in the business. However, if somebody, in the context of your business visits your premises (your parents house) your parents can be sued if a person is injured on the premises. If you are concerned about this, contact your parents insurance agent to make sure you have appropriate coverage.

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Answered on 2/24/17, 6:59 am

Mr. Pransky is correct in his assessment. One thing you might consider is forming a LLC for additional protection both personally and for your parents. Likewise, I assume you are 18 or older, so make sure you do not have your parents on your business account or otherwise. If you are not a legal adult, then things are much more complicated. Feel free to call me if you have more questions.

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Answered on 2/24/17, 2:56 pm

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