Spending Money to Cover Your Assets
There’s an interesting discussion going on between a couple of blogs about ways that small businesses can spend money to cover their assets in case they get sued. Essentially, a business can limit its exposure to liability in 2 main ways: (1) purchasing liability insurance; and (2) forming an LLC or corporation to try to limit personal liability of the business owners for actions or omissions of the business.
These articles cover some interesting aspects of what can and can’t be protected against, and include some considerations in the comments that are not purely legalistic. You can find this discussion here: Why Having an LLC or Corporation is Better than Insurance Alone
Both options seem to have costs and benefits associated with them. We’d be interested in hearing from our small business readers, including internet marketers, on whether they have done an analysis of the risks and rewards of insurance versus forming an LLC or corporation — and if so, what they decided to do.