Question by Lisa A: I have a home based business, do I have to do a limited Liability Corporation?
I want to protect myself from people, but it is only a home based business.
When do you or should you incorporate your business? If I have to incorporate where is the cheapest to do it and why?
I make my own cosmetics from home.
Which is the safest to do:
Limited Liability and so on. Which do I do?
Answer by Feeling Mutual
It depends on how much paperwork you want to do.
A Corporation makes your business into a seperate entity from you. That helps protect you from personal liability.
If you mess up on the corporate paperwork, it leaves you open to personal liablity.
An LLC offers the SAME seperate entity protection of a corporation, but is less paperwork than a corporation, so it might be safer if you are not a paperwork person. LLC means LIMITED LIABILITY COMPANY, it limits your personal liability.
I think that some states have seen the popularity of LLCs have have increased the fees for them though. It takes time and study to make an intelligent decision.
PS: Do you need a retailer for your cosmetics?
Know better? Leave your own answer in the comments!