My question involves business law in the state of: California
I'm in the process of operating an e-commerce site as a sole proprietor. I understand the benefits of LLC and it's liability protection but I would like to understand what trouble I can get into if I decide not to form the LLC. Here's more details about myself and my business:
-I'll be selling handmade jewelry imported from different Asian countries. Nothing I sell is produced/manufactured by me. Also, nothing I sell is a knockoff product so I'm not infringing on anyone's trademarks
-I'm not selling food products, vitamins, skin products...etc.. so I don't see a reason why someone can sue me for damages done by my products
-I will buy a business liability insurance for additional peace of mind (btw, do I need one if I don't have a physical shop/storage? I'm operating my business from my home in CA)
-I have a personal umbrella policy that covers me up to $1 million.
P.S. I purchased a domain name for my e-commerce site and I applied for a CA sales tax permit. I'll be collecting sales tax from customers.
With the type of business I'm operating, I don't see any valid reason for someone to sue the business (sole proprietorship). I totally understand that people like to sue but with that mentality, even if I own an LLC, anyone can sue me personally for any 'made up' reason (I just don't see how I will be better off with an LLC).
Can someone point out what I'm missing?
Regards
BO
I'm in the process of operating an e-commerce site as a sole proprietor. I understand the benefits of LLC and it's liability protection but I would like to understand what trouble I can get into if I decide not to form the LLC. Here's more details about myself and my business:
-I'll be selling handmade jewelry imported from different Asian countries. Nothing I sell is produced/manufactured by me. Also, nothing I sell is a knockoff product so I'm not infringing on anyone's trademarks
-I'm not selling food products, vitamins, skin products...etc.. so I don't see a reason why someone can sue me for damages done by my products
-I will buy a business liability insurance for additional peace of mind (btw, do I need one if I don't have a physical shop/storage? I'm operating my business from my home in CA)
-I have a personal umbrella policy that covers me up to $1 million.
P.S. I purchased a domain name for my e-commerce site and I applied for a CA sales tax permit. I'll be collecting sales tax from customers.
With the type of business I'm operating, I don't see any valid reason for someone to sue the business (sole proprietorship). I totally understand that people like to sue but with that mentality, even if I own an LLC, anyone can sue me personally for any 'made up' reason (I just don't see how I will be better off with an LLC).
Can someone point out what I'm missing?
Regards
BO
Starting a Business: Operating an Ecommerce Site As Sole Proprietor
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