Re: What business entity?
Madeleine,
The liability protection is to protect your personal assets if your business is sued. Businesses come with all sorts of liability. The type of liability you have will stem mostly around the services you provide. I provide bookkeeping so there is a lot of liability there because I handle highly sensitive, confidential information as well as handle people's finances although I very rarely deal with actual money. Someone who provides writing services may have a totally different type of liability, assume a client accuses them of stealing their idea for a book and sues them.
As VA's we don't really have to worry about physical liability like a brick and mortar business would, i.e. a client comes to your office, trips and falls and decides to sue.
The type of liability protection you need also varies depending on your individual situation. For instance, if you are a renter vs. a homeowner. If I get sued as a sole-p then I would be personally liable and I risk losing my home, but the LLC protects my personal assets.
You really just need to determine what services you are going to offer, what the potential liability is on those services, and what type of personal assets are at risk.
Being a sole-p is perfectly suitable for certain businesses, and you can always change it later on down the road as your liabilities or assets increase.
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Rebecka Melson ~ Virtual Business Services
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