What is the name of your state? Maryland
My wife is starting her own family child care business in our home. I have been getting conflicting advice from a number of people in regard to protecting our personal assets (none of them lawyers or familiar with insurance or liability). Some have said that we should form an LLC; the argument being that it will protect our personal assets should a child be seriously injured while under her care and it is cheaper in the long run than liability insurance which will only partially protect us if we do not purchase enough coverage. Some have said that we should purchase substantial liability insurance instead; the argument being that because the business is being run in our home and any serious injury would probably be blamed on personal negligence on our part (legally anyway) not only would our business be liable but we would be personally liable as well so our LLC would no longer protect our personal assets. I have no idea if this is true. Thank you for any assistance you can provide.
My wife is starting her own family child care business in our home. I have been getting conflicting advice from a number of people in regard to protecting our personal assets (none of them lawyers or familiar with insurance or liability). Some have said that we should form an LLC; the argument being that it will protect our personal assets should a child be seriously injured while under her care and it is cheaper in the long run than liability insurance which will only partially protect us if we do not purchase enough coverage. Some have said that we should purchase substantial liability insurance instead; the argument being that because the business is being run in our home and any serious injury would probably be blamed on personal negligence on our part (legally anyway) not only would our business be liable but we would be personally liable as well so our LLC would no longer protect our personal assets. I have no idea if this is true. Thank you for any assistance you can provide.