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Business Insurance or Do the LLC

mownitup

LawnSite Member
Location
south carolina
Which will be cheaper and or better, getting Business insurance or doing the LLC thing over the internet?

I've gotten one quote on Business insurance and they are wanting to charge me @ $650 per year. If I do the LLC thing over the internet it's going to cost me @ $250?

Speaking with my Accountant I was told to do the Sole Proprietor
verses the LLC because it would be cheaper on me tax wise and I could file my business along with my personal taxes!
 

Fantasy Lawns

LawnSite Bronze Member
Location
Space Coast
I'd get a new accountant

But what does having insurance and having an LLC or even sole proprietor as business structure have to do with each other

Either way as an LLC or sole prop you expose your self to being sued without insurance to cover damages

I'm an S corp which gives me limited personal liability as far as being sued myself .... has great tax advantages .... gives me perks as an officer of the corp (company truck, phone and other "gifts" from the company)

Having insurance is just protection from damages one may create as an S corp, LLC or even solo .... one should have it
 

Hawkeye5

LawnSite Senior Member
Choice of business organization (Corp., LLC, Partnership, Sole Proprietor) has no impact on the need for insurance. It is irresponsible and foolish to operate any business without providing for potential legal liability to others and to protect assets.
 

Scraper

LawnSite Bronze Member
Location
SE Pennsylvania
Originally posted by Hawkeye5
Choice of business organization (Corp., LLC, Partnership, Sole Proprietor) has no impact on the need for insurance. It is irresponsible and foolish to operate any business without providing for potential legal liability to others and to protect assets.
Exactly...just because your LLC does not negate the ned for insurance. Either way, a person is going to hit your insurance. Only difference is LLC may protect you from them going after your "personal" assets (i.e. house, car, furniture) as opposed to your business assets (i.e. mower, aerator, truck)
 

mtdman

LawnSite Gold Member
Location
A2, Michigan
A single member LLC files as a sole proprietor, there would be no difference. Being an LLC does not negate the need for insurance.
 

DJL

LawnSite Member
either you need to get a new accountant or you are asking the wrong questions!

you need to get this straight. Whether you are a sole proprietor, LLc, LLP, C-Corporation, whatever, you still should get insurance.

the other thing I'd look at is this...

DON'T quote me on this but...

let's say you get sued for running over poor ol' aunt millie with your mower. She sues your company and is granted two million by the courts. Now, let's say you had a one million insurance policy, fine paid the first million. But now YOU are responsible for paying the rest from your company. Let's say your company doesn't have the money. You wind up selling everything in the business until you can pay her. Can't, they will go after you personally.

BUT...in an LLC they can only go after the assets in the business, NOT your personal assets, LIKE YOUR HOME!! Of course, this scenario is dependent if you ran your business as just that, a separate entity from your personal. But that's another story. Oh ya, and if you had insurance chances are the insurance would settle with Aunt Millie before going to court.

Just my two cents.
 
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