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Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
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My father in law wants to start his own draftsman business.

Customer Question

My father in law wants to start his own draftsman business. Should he have a LLC to start or is this something he can obtain as his business grows??
Submitted: 6 years ago.
Category: Business Law
Expert:  Ellen replied 6 years ago.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open forum. Do you understand and accept these provisions as well as's disclaimer?

Please respond with a Yes or No to continue.
Customer: replied 6 years ago.
Expert:  Ellen replied 6 years ago.

Thank you for your question.

The principal benefit of doing business as an LLC is the protection from liability that it provides. It would enable your father-in-law to sign a lease and incur debt on behalf of the LLC without incurring personal responsibility should the business fail. It is typically advisable to incorporate but is not required to be done at the onset of business
Customer: replied 6 years ago.
Thank you sir,

Based on the cost of LLC formation, is the "drafting company" industry at a high risk for litigation?? Would it be more cost effective for my father to do it now or simply wait to see how his business progresses??
Expert:  Ellen replied 6 years ago.
If your father-in-law is the only employee, he may consider waiting to see how his business progresses as any liability for his own negligence would not be protected by the corporate veil. However if his business has employees from the start, the LLC would protect him from the liability of those employees
Ellen and 2 other Business Law Specialists are ready to help you
Customer: replied 6 years ago.
thank you
Expert:  Ellen replied 6 years ago.
My pleasure. Thank you and best wishes for success