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I am going to invest in insurance coverage of 1 million with 2 million aggregation. Should I form an LLC?
 

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Household Handyman
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I wouldn't bust anyone's bubble about going into business for him/herself, but--you need to get a grip on yourself and sit down for a minute or two. I worked all of my working life for companies (my choice) doing the work I loved to do. After retirement and some rest I started my own business, a Household Handyman business because a lot of people were asking me to do what I had been doing on the side for years. I have built many decks of many sizes and styles, until I went into business for myself. Since I now have my own company, I have built-ONE. Yes, one for hire. Not to say you won't get any, I'm suggesting that you shouldn't get so confident that you will have back-orders for decks as to go form an LLC with millions of dollars of insurance. Try just obtaining a business license with proper insurance for your area, see how much business you can drum up and work from there. I'd love to hear that a year from now you are so busy, with so much work you need the LLC and millions of dollars of Insurance coverage. Good Luck, David
 

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Building one deck hardly qualifies you as a deck builder. Unless you have more experience than you've identified, you have no business charging people for such work. There are usually licensing requirements for contractors, which often involves varying amounts of experience and continuing education. Not to mention the damage that an improperly built deck can do to a home or the people on the deck. The insurance that is needed to do contracting work is so expensive that you'd better be able to build decks all the time and efficiently if you want to see any profit at all. Anyone that hires someone to build a deck for them without confirming that person's liability and injury insurance is making a poor decision.

An LLC essentially keeps the ownership of a company from being personally liable...The company can get sued or bankrupted without the owner losing personal money or assets...More or less. Not forming an LLC ensures that you can be held personally and financially liable for whatever you screw up.

I'd recommend that you visit our sister site, www.contractortalk.com, which is geared toward contractors. This site is geared toward DIYers.
 
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