posted on July 1, 2003 11:32:30 AM new
Being in a mail order business, I never gave much thought to the liability issue. No storefront, you see. I thought possibly the worst thing we risked was a paper cut.
However, email from a buyer has revised that opinion:
"When I opened the clasp on the necklace it came apart and WENT INTO MY THUMB! Ow! That really hurt! Blood all over..."
User error? Maybe. But when did that ever matter to a lawyer?
So perhaps it's time to set up a limited liability company. I know there must be some serious sellers out there who have done this already. Let's hear from you.
posted on July 1, 2003 11:54:17 AM new
Check with your state's website, each one seems to look at LLC's differently. Also you may want to consider a S-Corporation as that in simple terms is a happy medium between a standard corporation and a sole proprietor.
I'm actually going through this right now with my girlfriend for her business.
posted on July 1, 2003 01:22:36 PM new
Fluffy: The Subchapter S corporation is the way to go. I have a friend who set one up to let him collect SS at 62 with no penalty. He made his wife President of the
Corp. & let her draw a big salary while he stayed under the max allowed. His wife is 10 yrs. younger so there was no problem with FICA.
