LLC or Liability Insurance?

by | Mar 14, 2015 | All Up In Yo' Business, General, LLCs, Single-Member LLCs, Starting a Business

This video is in response to another great question I received from one of my viewers: If I am a sole-proprietor and have a $250,000 liability insurance policy, do I still need to form my business as an LLC? Or in other words, what’s the best route to protect my personal liability? An LLC or liability insurance?

Now, if you are a lawyer or have ever gone to law school, you will hopefully appreciate this answer.  If not, then I am sorry that you can’t be in on the inside joke.  But the answer to that question really is: “It Depends.”

It depends on a few factors, including the industry that you are going into and whether or not there is a lot of risk of lawsuits and liability within that industry.  It also depends on your tolerance for risk.  If you are willing to take a higher risk and save a little bit of money and administrative work, then it might be worth it to go one way or the other.

One of the main purposes of forming a business as an LLC is to give yourself that liability protection. To add, if there is any liability to the business, you as a person and as an individual are protected from that liability.

 

This episode of All Up In Yo’ Business is all about which option is best for you to protect your business.
Check out the full video to learn more! Contact us today if you need help with your LLC. Also, be sure to subscribe to our YouTube channel for more All Up In Yo’ Business!
Want to learn more about business insurance? Check out: Protecting Your Small Business.

 

Post

Comments

0 Comments

You may

Also like

Using a Virtual Address for LLC Registration

Using a Virtual Address for LLC Registration

When a business starts and is looking at registering as a Limited Liability Company (LLC), their first thought is probably about office space. Not only does having a fancy office space give your business a more professional feel, but it allows you to put a physical...

read more

10 Legal Tips for Starting a Business in 2022

If you're starting a new business venture, you'll want to make sure to take a few legal steps so your business is legally protected and set up for success from the very beginning. You may have a great new business idea and you're ready to launch, but you have to make...

read more