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I am planning on opening a small business (Bicycle shop) in

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north San Diego County....
I am planning on opening a small business (Bicycle shop) in north San Diego County. Should I use the LLC route or the personal owner. Thanks, Jerry
Submitted: 8 years ago.Category: Business Law
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7/3/2009
Business Lawyer: socrateaser, Attorney replied 8 years ago
socrateaser
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 39,376
Experience: Retired (mostly)
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Potential liability for negligence from customer injury in the bicycle business is very high.

 

Not incorporating or creating an LLC would seem to me perilous. Also, business liability insurance may be extremely important, because a personal injury attorney would likely attempt to hold you personally liable, in the event of a serious injury or death, if you are a one-owner corporate/LLC entity.

 

Hope this helps.

 

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socrateaser
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 39,376
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Customer reply replied 8 years ago
Thank you. What would be the best way to form the LLC? Jerry
Business Lawyer: socrateaser, Attorney replied 8 years ago

The best way would be to hire a private attorney with corporation formation experience to custom draft an LLC operating agreement for you. But, most people cannot afford this solution, and generally opt for generic solutions, such as may be found at http://www.legalzoom.com/, or http://search.nolo.com/query.html?qt=llc&col=b2store.

 

If you want to go the lawyer route, see: http://www.abanet.org/legalservices/lris/directory/main.cfm?id=CA.

 

 

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Customer reply replied 8 years ago
If I do business as an LLC do you think I can still purchase inventory under my own name since I have good credit and the LLC would be new with no history? Thanks, Jerry
Business Lawyer: socrateaser, Attorney replied 8 years ago

If you purchase under your own name, you will be liable to that creditor if your LLC doesn't make it. However, you can guarantee the LLC's financing -- just be aware that you will be undermining a portion of your protection.

 

If you go it as a sole proprietor, then you need enough liability insurance to cover all of your net worth. Otherwise, you could be wiped out, for the amount above your insurance coverage.

 

Example: you repair bike, customer, who is a physician with high earning capacity, leaves, front wheel falls off in traffic, and customer is killed. Heirs sue you for wrongful death and they win a $10,000,000 award. You're toast.

 

 

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