Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jan 19, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Insurance Question from Henderson, NV

Asked on 01/19/2012

If I have general liability insurance for my small business, so I still need to make my business an LLC? I am starting up an online business, but I have a very low budget. I plan on having general liability insurance, and I would ideally like to make my company and LLC, but that would take a big chunck out of my start up budget. I'm hoping to wait until I make a little money from my business before making it an LLC. If I have the general liability insurance, will I be ok with going about a half a year without being an LLC?

Answer given on January 20, 2012

You didn’t mention what type of business you are forming.  It really depends on what type of liability you are trying to shield.  If, for example, you are making and selling organic baby food, your approach would not work as the LLC would not give you enough protection nor would having General Liability Insurance policy in your name instead of the company , until you have the money to form the business entity.  Talk to the Nevada Department of Business and Industry. The personnel in the Nevada Small Business Development Center could help you. Talking to them and giving them the particulars of you business certainly should answer your questions. They can also advise you on the laws of your state with regard to your business.


IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.