If I have general liability insurance for my small business, so I still need to make my business an LLC?
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UPDATED: Jan 19, 2012
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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.
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