LLC or Sole Proprietorship?

[skitelluride531]

I am going to be starting another detailing business very soon. Putting together my startup costs, and the cost to form an LLC in Massachusetts is $500.



I know the difference between LLC and Sole Proprietorship, but am curious, do most mobile detailer`s form an LLC? Obviously, the protection of personal assets is nice, so I wondering if it is worth the $500 filing fee.









Secondly, for those of you who have insurance, what company did you go through to purchase it? What type of insurance would you all recommend for a mobile detailer, who will do the occasional driving of a customer`s car?



Thanks for all your help.

[ajnavo61490]

i have an LLC, its just something nice to have if something DOES go wrong

[imported_weekendwarrior]

+1 on the LLC....That`s what I have. You will need general liability (in case you hurt someone...ie..someone trips over your extension cord), as well as garage keepers insurance (to cover the actual car).

[Deep Gloss Auto Salon]

I have an LLC... less personal liability

[imported_ajbarnes]

Secondly, for those of you who have insurance, what company did you go through to purchase it?

Safeco. Very easy company to work with and the policy (General/Garage) is pretty affordable ($500/yr.)...at least for my neck of the woods.

[imported_weekendwarrior]

+1 on Safeco...it was very easy and affordable through them.

[Harbison215]

im a sole proprietorship right now. i will incorporate when my business grows. i have a lot of new things on the way so it could be soon.

[m4gician]

im a sole proprietorship right now. i will incorporate when my business grows. i have a lot of new things on the way so it could be soon.

If you operate out of your own home, have the proper waivers drawn up your home insurance should cover you. You should look however at general garage insurance if you`re not incorporating.



Incorporate when you think the business is sustainable and good enough to expand.