All Up In Yo’ Business: LLC or Liability Insurance

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Complete Video Transcript

0:05well I’m so glad you could join me today I’m attorney
0:08Aiden kramer with a lot of it a teenage came in Colorado
0:11in your watchin olive in Yelp it net at that mentioned impact video I get a lot
0:17of really great questions from you guys
0:19so I’m gonna do in this episode and if you have that next episode
0:23I’m going to try to answer them this question to react today’s question came
0:26from Shari
0:27sherry after if I am a sole proprietor and I have a two hundred and fifty
0:31thousand dollar
0:33liability insurance policy do I still need to for my business
0:37as an LLC now if you are a lawyer or
0:40have ever gone to law school you will hopefully appreciate this answer
0:44if you’re not then I’m sorry that you can’t be
0:47in on the inside joke but the answer to that question
0:51really is it depends it depends on a few factors including
0:56the industry that you’re going into and whether or not there’s a lot of a risk
1:00out the lawsuit
1:01and liability and that industry and it depends on your tolerance for risk
1:07if you’re willing to take a higher risk and
1:10save a little bit a mani and a little bit administrative work then it might be
1:13worth it to go one way or the other
1:15one of the primary purposes a forming a business as an LLC
1:19is to give yourself that liability protection
1:22so if there is any liability for the business you as a person you as an
1:27individual
1:27are protected from that liability so let’s pretend that you’re operating at
1:31the sole proprietor
1:33and you haven’t formed al out feat but you have to
1:36two hundred and fifty thousand dollars liability insurance policy
1:39if you do something in the course at your business that opens up to liability
1:44and somebody su CEO
1:45than that insurance policy is hopefully going to cover any and all liability
1:50but if you do something really bad and that you’re liable for
1:54over 250,000 dollars worth of damages
1:57and in that case are gonna kinda be screwed singer insurance policy is over
2:02only gonna cover you for up to two hundred fifty thousand dollars anything
2:05on top of that you will be personally liable for
2:08if on the other hand you are an LLC you’re only going to be liable for the
2:13affect
2:14at the bitmask and your personal assets will be protected
2:17most likely so unfortunately shari I can’t really give you a definite answer
2:21since it depends on multiple factors
2:23and on your own tolerance for risk if the likelihood at you being involved in
2:28any type of lawsuit
2:29due to your business industry if it’s just not very common for you to be
2:34involved in lawsuits then it might be worth it to just save the money and get
2:39that insurance policy and not deal with the hassle
2:42a forming and maintaining an ally of the if you really wanted to cover your
2:46a that thing to do would be to form that healthy and then take out ap business
2:51insurance policy for two hundred fifty thousand dollars
2:54or whatever amount you want it to be cut then not only would you be personally
2:58protected through the Al of the
3:00they are healthy would also have that cushion from the insurance policy
3:04so I hope that kinda answered that question and i know i couldn’t really
3:09give you a
3:09deaths are now anther but I hope that helps in your decision
3:13if anybody out have any questions go ahead and comment them all out
3:16if you’re in Colorado anyone to speak with me personally about how to setup or
3:20maintain your small business
3:22feel free to contact me at my phone number e-mail are below
3:25either I thank you so much for watching I’m eating Kramer and I’ll see you next
3:29time

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