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LLC and Insurance


Jodi in Ohio
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:confused: Does anyone have Limited Liability Coverage along with regular insurance coverage? Is it a good idea to have both? I heard that your personal assets can still be attacked with LLC but only after the business assets have been attacked first. In my case, just starting out , I have no business assets.:grin2:

Thanks!

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An LLC is a limited liability company. And it's not a level of insurance coverage. What it means for my business is: my limited liability company is my business, in the event of a lawsuit, my LLC is who is being sued. If I was a sole proprietor (using my personal ssn for tax purposes) then all your personal assets are fair game in that arena. Being an LLC does not prohibit you from being sued personally. The lawsuit would be Jane Doe v. Candle, LLC and Ms. Candle Lady. I opted for an LLC for the separation of my personal assets & business assets for tax purposes.

I do carry product liability insurance also.

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No problem. I am fortunate that my other job is working for a tax lawyer, so I received very good advice (for free). Nothing prevents you from being sued, it's a matter of being succesful in the lawsuit. But nonetheless a huge pain in the butt if you are sued.

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