If I want to start a small homebased business offering baked goods, what are the requirements?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
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 10 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.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.