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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 116750
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I have a business in Spain and I want to sell on Etsy. Most

Customer Question

I have a business in Spain and I want to sell on Etsy. Most of the consumers will be US people and consumers from Europe etc.My products are from all around the world like jewelry and sunglasses from China, print on demand shirts from the US etc etc.Do I need a product liability insurance?
Do I need a LLC in the US?
Are my personal assets be a risk when selling product , also when I have a LLC or LTD or something like that?
Submitted: 8 months ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 8 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

1) Legally, no you do not need product liability insurance if you are not manufacturing the products and on your website you state to every purchaser that your liability is only up to the cost of the product and you are not liable for any harm or damage caused by the product.

2) You do not need to be an LLC or corporation to sell in the US, you can sell online as a foreign entity without ever being registered in the US.

3) Your personal assets are at risk in any business unless you form some type of corporation and run your business through that corporate entity. But if you run your web business through your corporation, your personal assets would be protected.

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Customer: replied 8 months ago.
My business is doing dropshipping from China to US and other countries.Now I'm checking if LLP is a good business to have. Is there any liability for a LLP?
Can I start this with my wife, while she does nothing?
Is there personal liability when I'm having a LLP?
Expert:  Law Educator, Esq. replied 8 months ago.
Thank you for your reply.
An LLC and not an LLP protects the owners from personal liability, so it would protect anyone from suing you and coming after your personal assets. If anyone sues you, all they can get at is the property in the LLC. An LLP on the other hand allows someone to come after the owners of the LLP personally. So the LLC or S.L in Spain would protect you from personal liability, not the LLP.
You can start an LLC with your wife if you like, there is no prohibition. The LLP is just basically multiple people getting together as partners and it really does not offer personal protection.
Customer: replied 8 months ago.
a LTD in Uk will also be enough for product liability. Or do I need a insurance for product liability. Because it looks insurance will not insure my products.
Expert:  Law Educator, Esq. replied 8 months ago.
Thank you for your reply.
Yes the LTD in the UK is enough to protect you from personal liability. The general liability insurance protects you from liability for your actions. As far as the products the manufacturer is jointly liable with you for harm caused by their product. You can limit your liability by a disclaimer on the website and on each of your check out forms saying, "Seller liability for defective products limited to refund of purchase price of the item."