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Starting a LLC..

Discussion in 'Business Fundamentals' started by DodgePlow, Nov 15, 2003.

  1. DodgePlow

    DodgePlow Member
    Messages: 44

    Hey guys,

    I know most of you on here have your company as a LLC. I am thinking about doing that but I was wondering if I still needed to get GL ins. on my truck. If I was LLC , would I be covered or at least have nothing come out of my pocket if a slip and fall occurs.

    Well it is difficult right know for me to get GL ins. Nobody wants to offer me it. If an accident occurs, they can only go after the LLC and not me personally...right?

    I just need a few things cleared up about the advantages of having a LLC and how it works.
    Any help would be great !

    Thanks Alot
  2. Plow Meister

    Plow Meister PlowSite.com Addict
    Messages: 1,174

    You should start an LLC. That way, if something were to go wrong such as get into an accident or kill a dog, the GL from the LLC will cover the damages. Also, if you put your truck in the name of the LLC, if someone were to get 'sue happy', they can't come after you personally.
  3. BWinkel

    BWinkel Senior Member
    Messages: 103

    Starting a LLC to avoid getting general liability insurance is not a good business practice. For one thing, any assets you have in the company would be exposed to a lawsuit. A good lawyer may be able to penetrate the protection of the LLC especially if your company did not have gl insurance and you run your business like a sole prop. You also need to make sure your business has grown to a point where a LLC makes sense from a finacial standpont. Best thing to do is talk to your accountant and attorney and get sound advice.
  4. CPSS

    CPSS Senior Member
    Messages: 334

    I agree, talk to an attorney. A LLC or any corporation is only good protection if it's set up right. A common term attorneys use when trying to see who's who when a possible lawsuit is considered is can we" pierce the corporate veil", which in laymens terms mean was the corporation set up properly. Don't attempt any major business reformation without consulting with a business attorney. The money you think you saved by "doing it yourself" could be quickly lost when an award attaches your wages, takes your truck, or even your house. Insurance is the first line of defense. Be sure the primary entity ( personal, corporate, etc.) is the principal insured.
  5. Plow Meister

    Plow Meister PlowSite.com Addict
    Messages: 1,174

    Just to make sure no one misunderstood my response earlier, I did not mean to imply that by starting an LLC, you do not need GL insurance. No matter how you do business, you MUST have the proper insurance. What I meant was an LLC is a separate entity from your personal doings. Therefore, when or if an accident happens, the person or property you damage can not go after you personally, just the company. If you have a lot of persoanl assets you should start an LLC.

    My wife sells insurance fora large brokerage in Chicago. She is even suggesting a personal blanket policy fo me as well, just in case. But... that could be the insurance salesman in her talking.