If I want to start a small homebased business offering baked goods, what are the requirements?

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If I want to start a small homebased business offering baked goods, what are the requirements?

Is a DBA or LLC best? I will just be me running it. Also, how can I protect myself from potential lawsuits (i.e.food poisoning)?

Asked on August 11, 2013 under Business Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Most attorneys, including myself, would recommend an LLC; while it will involve some paperwork and some small additional costs, it will protect your personal assets (such as your home, bank account, car) from business debts (such as loans to the business which you did  not personally guaranty; or payments owed to vendors/suppliers/contractors) and business-related liability (e.g. if the business is sued, such as for injuring someone). In addition to establishing the business as an LLC, you should also buy and maintain adequate general liability insurance for the business.


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