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Richard, Attorney
Category: Business Law
Satisfied Customers: 55452
Experience:  32 years of experience practicing law and a businessman.
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My sister and I are attempting to make something of our hobbies.

Resolved Question:

My sister and I are attempting to make something of our hobbies. We are planning on setting up a new checking account to put profits in and purchase materials as well; instead of our own pockets. Should we use a DBA now and see if this takes flight? Or should we start off dreaming big and create an LLP? Thanks!
Submitted: 5 years ago.
Category: Business Law
Expert:  Richard replied 5 years ago.

Good morning. This depends upon how much potential liability your hobbies might create for you. If the hobby has the possibility of creating potential liability beyond the known costs of materials, then you would want to set up a limited liability entity now....I would recommend an that your personal assets are not at risk for any of the business' liabilities or lawsuits. If not, go ahead and operate as sole proprietorships or as a general partnership to avoid the upfront costs and file an Assumed Name Certificate for the name(s) being used.


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