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619

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[–] • 3 pts

No need for an LLC. Look into DBA

[–] • 0 pt

What's a DBA? Does it protect you in the event of a lawsuit?

[–] • 1 pt

Doing business as.

Why is your friend going to be involved in lawsuits for selling knives? What is he liable for??

[–] • 0 pt

I think I'm wrong on this but I'll say it anyway.

  1. If the product is somehow defective, I believe they can sue

  2. If the product causes them to be harmed I think they're able to sue. I'm not sure on this one though. I'd have to be a defect for that to happen

[–] • 2 pts

He should incorporate when he has something worth losing. For example if he just has his shop that he rents, and lives in an apartment, and his only assets are the tools he uses to make the knives all they can get by suing is his assets, and garnishment. If, for example, he acquires a house, some nice cars etc then he will want to have the shop, and the tools transfered to the LLC and keep the house and cars under personal assets.

Just because he doesn't do anything wrong does not make him immune from lawsuits. Anyone can get sued any time, by anyone, and it costs the defendant to hire a lawyer to defend.

[–] • 0 pt

Why would he want to sue his assets, though? That sounds awfully Californian.

[–] • 1 pt

All any plaintiff can get by suing are his current assets and garnishment.

It sounded ultra clear at the time I wrote it, and re-reading it it's clear as mud.

If he has an LLC they can take his company assets but not his personal assets.

[–] • 0 pt

Well, that still sucks, but I guess it's a matter of hedging one's bets.

[–] [deleted] • 1 pt

If you ask the State permission to do business, then report income and pay taxes on that business, you are objectively a slave goy. Ask yourself whether you can live with that on your conscience.

If you're worried about lawsuits, make a customer agreement that protects you from liability for the customer hurting themselves with your product.

[–] • 1 pt

um asap liability and all

[–] • 0 pt

So LLC?

[–] • 1 pt

Something to deal with the liability

[–] [deleted] • 0 pt

limited liability corporation. It's so you can lose your business but not your home or car.