Do you need a business license, for general liability insurance

[MDLawn]

Originally Posted by s-lc

if you are willing to pay money, most companies dont care about your story...

Yes, but my insurance company was quite direct on what I was to and to NOT do. For example if I was using a backhoe to dig a huge hole and cut a gas line....not covered. That would be extra $$$ for that coverage. There were some other things too. Just be sure you know what you're buying coverage wise. Mowing lawns is very different than construction and you may only be covered for what you say you do. All I'm saying is look into it and don't sign blindly.

[s-lc]

Originally Posted by MDLawn

Yes, but my insurance company was quite direct on what I was to and to NOT do. For example if I was using a backhoe to dig a huge hole and cut a gas line....not covered. That would be extra $$$ for that coverage. There were some other things too. Just be sure you know what you're buying coverage wise. Mowing lawns is very different than construction and you may only be covered for what you say you do. All I'm saying is look into it and don't sign blindly.

you are right. they want to know exactly what type of work you are doing. mowing lawns is different that building retaining walls which is different that installing fertilizer. each thing you do adds risk which in turn adds cost to insurance payment.

if you get a policy for "mowing only" and you have an accident while building a walkway, you will not be covered.

[tjlco]

Allstate made me show proof that I was a corp. 7 employees was more than 6. I guess there is a chart they use 1-3; 4-6; 7-10 and so on. The more employees the more we pay. And I had to sign an affidavit saying I won't trim trees, even if my feet never leave the ground

[mjlcare2]

Why the hell would you be looking for an insurance policy if you don't even have a business license.. sounds like your doing it ass backwards

[GreyFlames]

It is easy and does not cost much to register yourself as a Limited Liability Company(LLC) or Sole Proprietor. You should also check with you accountant the best way to report your business activity

If you are caught running a business with out registering it you could be fined. I don't know what your town and state laws are, but it is easier to be safe in this case.

You probably should be charging sales tax for some of your services and paying that to the state. If you are caught and should have been charging sales tax, the state will make you pay the amount you should have collected out of your pocket.

Take the time now to get on the right foot.