Should I register and insure my tow truck in my name or should I start a business name?

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Should I register and insure my tow truck in my name or should I start a business name?

If I’m operating a tow truck but leasing it to another companies name instead of starting my own company should I register and insure it in my name or should I still create a business name for the liability aspect or does that all fall on the business I’m leasing through with the lease to agreement?

Asked on August 16, 2011 Illinois

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Most people who desire to start a new business in order to protect themselves individually from liability either incorporate or create a limited liability company as the entity to operate the business under using a specific name for the entity.

As considerations for incorporation or for creation of the the limited liability company, these new entities are adequately capitalized for the business venture, have adequate liability insurance and their existence and operation are kept separate and maintained from the day to day activities of the individual owner.

In your circumstances, you should consult with a business attorney as the best means for operating your tow truck business name so as to safeguard you from any personal liability in the event of a business decline or a lawsuit.

Good question.


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