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I have a small bartending company in southern CA. I have a…

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I have a small bartending...
I have a small bartending company in southern CA. I have a sole proprietorship (DBA) under my name. We do not sell alcohol. We are just providing a service.
As the company is growing, I need help figuring out the best steps to protect the company legally.
I Need help in figuring out the following information?
- Do I need to get a LLC since the company is growing bigger. (some have told me that I need to talk to a CPA and others have suggested I should talk to a lawyer). I know forming a LLC is expensive and I have to pay a lot more in taxes.
- Do I need a liquor liability insurance since I'm only providing alcohol. I'm not selling alcohol since I don't have a liquor license. When I book an event, a venue will require me to submit insurance liability form. Does that mean I need to purchase liquor liability as well as general liability coverage?
- Revenue for the business is around $25K. so far this year and I have 3 employees (they are private contractors). What steps do I need to take so I wouldn't get sued by them if something were to go wrong.
- I have more questions once I get the right lawyer to help.
Thank you for your time reading this.
Submitted: 2 years ago.Category: Business Law
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6/3/2016
Business Lawyer: Law Educator, Esq., Attorney replied 2 years ago
Law Educator, Esq.
Category: Business Law
Satisfied Customers: 125,858
Experience: All corporate law, including non-profits and charitable fraternal organizations.
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Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Quite honestly, forming an LLC is not expensive and it can protect you from personal liability. It may cost you about $1000 initially and then your taxes to the franchise tax board. However, if you are serving alcohol there is liquor liability and if you are sued you can be liable personally for a suit if you do not have an LLC and also proper insurance.
Forming an LLC can be done on your own by going on the Secretary of State's website and also then going to the IRS website and getting your EIN number in the name of the LLC. You would likely tax the LLC like a corporation, not a partnership, so you do not have to claim all of the proceeds on your personal taxes.
You would likely end up making the workers actual employees at that point so you can cover everyone under your liability insurance and you would have to withhold income taxes from them as well.
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