Do you create an LLC to sell your soaps/candles/etc?

[C Dizzle]

The general consensus seems to be that insurance is mandatory to sell. What about being an LLC? Do you need both? I am guessing you do, but I don't understand enough about LLCs to know, but the insurance part is pretty obvious.

[TallTayl]

Insurance yes.

LLC : i wish i had when i started. My state (IL) is ridiculously expensive to register an LLC. Coupled with all the other fees to start a business and register a DBA for something i never initially planned to grow it seemed unimportant at the time, if i could go back and advise my past self, i would have just bitten the bullet then. BUT... I have rebranded several times since the start and would prefer now to form the LLC with the latest branding, so thanks for the reminder to just do it

[kandlekrazy]

I think it depends where you live, in CA it's ridiculous as well so I dropped my LLC.  When I had family in AZ, I had my LLC and insurance based there are both were inexpensive.

The LLC does protect you some if you have a lawsuit, but I know someone who they did attach his personal assets in a lawsuit, so nothing is a guarantee.

[pcbrook]

In Wisconsin it is only $130 to register an LLC and $25 per year to keep it.  I don't think  that is too bad at all.  I do not know what other states charge.

 

It helps protect you but as stated above, nothing is a guarantee.  

[Candybee]

C Dizzle you should bookmark this site Small Business Administration and make it your new best friend: https://www.sba.gov/

 

They have all the info you need to start a business including deciding what entity to use and what each one is. They also have a section that gives you the local affiliate office so you can go there to get advice and help. Also, the local affiliates have business classes that may be free or are offered at a very small fee. I took several courses at my local SBA affiliate; choosing business entities, business insurance, how to use social media, quickbooks, bookkeeping, etc.

 

They also can help you with making a business plan, how to apply for a small business loan, and lots of other helpful info.

[C Dizzle]

I will definitely check that out. I figure I might as well give the scenario here, because why not? Y'all are just trying to help.

 

The filing fee here is only $100. My only hangup is my best friend is specifically a business attorney and is going to do it for free. But, yesterday I learned he just got ill and it might be a month or three before he's recovered, caught up at the office, and able to get me in there.

 

So my options are this.

 

1. File for LLC for $100, and then amend the documents later which could cost up to another $100. I could change everything to the way that suits him then, but it's an extra $100 I would have to spend.

 

2. Just wait the month or three before he's ready to file anything. This will only cost me $100 period.

 

Either way, in a few months I'll be an LLC with professionally filled out documents. The real question I am wracking my brain about: is it worth the extra $100 now for the 1 to 3 months extra protection, or do I just wait? I'm heavily considering waiting as I really need to limit my expenses before I start selling, and it would be nice to start selling the candles I've thoroughly tested so I can start buying more soap/candle things to test more products. I guess the real question is: is the $100 worth the protection it may offer for up to 3 months, which is probably a very technical question I need to ask an attorney and I dare not ask him right now.

 

As I stated before, under NO circumstance am I selling ANYTHING without insurance! Ever

[ChrisR]

The LLC isn't technically important, it's just for your own peace of mind.  Insurance is the important protection you need as soon as you  start testing candles and giving them to anyone.