An LLC can protect your personal assets as long as you set it up and run it correctly. Consult an attorney with experience so you don t set yourself for failure. If you ever get sued, the opposing attorney will attempt to pierce the veil created by the LLC. If they can show that you are not setup or running your business according to the laws, your personal assets are fair game. NEVER mix your person and business bank accounts. I have mine at 2 different banks. I would suggest consulting your Secretary of State to see if they can make any suggestions based on your business type. The only time you will need the protection of an LLC, is when you get sued for more than your insurance will pay. Talk to your insurance agent about that. Talk to an attorney to get a contract that covers your butt against most frivolous claims. That way you can really only be sued for negligence or gross misconduct.GOOD LUCK to you.
I second both veronica and thompson above. Never run a business as a sole proprietor. There are nearly 50,000 lawsuits filed every day in the US and 1.2M practicing attorneys. And currently there are nearly 400,000 students in law school. We aren t becoming less litigious, we are becoming more litigous. I consult with clients every day about setting up LLC s. I am not an attorney, I am an entrepreneur who believes in capitalism and small business and our right to keep our wealth in the event of frivilous litigation. I offer clients a free 30 minute consultation to assist you with proper entity selection and formation. Let me know if you need assistance.
LLC, because it protects your personal assets from lawsuits.
