First of all, i think i have read almost every thread on here. I appreciate all the help from everyone- you guys are truly amazing and i only wish to have as great of thibgs to contribute in the future.
I've started a baking company from my home while workone a full time job. I am currently under the cottage law but am so excited to move forward and hopefully eventually realizing my dream of owning my own store front. Anyway, my question (or series of) is:
Do I need to register my business legally immediately under an LLC, Co., etc?
Should I register for business insurance immediately?
Please note, I am so small right now - my biggest weekend is this coming weekend - two cupcake orders, a Cupcake cake and a two tier fondant cake. I love doing this - just want to do it right. Thank you in advance for your help!!
no help here, but good luck on your order !
yes to all questions.
Here's why. Let's say the unthinkable actually happens. Someone gets sick and its traced back to you. You are liable for whatever they want to sue to for, and the costs of defending yourself.
If your company made the cake they will sue your company, not you, and only your company assets will be on the line.
If you don't have a company to sue, then you and all you own are on the line - your house, your checking and saving accounts and all your assets.
If you have liability insurance, they will pay the judgment against you.
So the bottom line is, "Is the risk plus the cost of the insurance worth gambling everything you own?"
www. fliprogram. com and you can get DIY forms on your state's Secretary of State website to incorporate.
If you're selling anything, especially food, you need to be registered and insured. Get an LLC, at least, when you start out so that you don't have to convert to one later, since you'll just end up doing all of the paperwork to register a new business again if you switch at a later date. You'll also need to register to collect sales tax if food or catering is a taxable item in your area.
Thank you!! I really appreciate the replies! We are in the process of registering, so I should be able to get this going soon! Thank you!