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Business start-up...Do I need to Inc.,or LLC?

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Thank you for reading my questions.

I am considering starting a Science Fiction type mail order business via the Internet, with a very small budget (under 2K which should be adequate), however, I have seen numerous other mail-order businesses, who have been in business for many years now, without being incorporated or and LLC and doing fine. Some of them are pretty big.

A) I understand some small businesses have the option to take out business insurance, but do I really need to Incorporate of set up an LLC for such a small operation? Or, to maybe ask this question differently: What situations could my Mail order business possibly encounter, to make me consider the decision to Incorporate or LLC? I'm basically going to sell costumes, action figures, colletible cards, collector pins, model kits , videos, cds etc... so what could "go wrong" that would make me wish I had Incorporated or LLC?

I would really appreciate a somewhat thorough and detailed answer, because I have asked this question before and no one has been able to provide me with an answer which satisfies my confusion on this matter.

One last question:
B) IF I were to eventually consider business insurance, How would I decise how much to get? I'm sure there are different "tiers" of coverage but how do I know what is adequate, too much, or just right?

Thank you for you attention.
 


L

lawrat

Guest
I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

Try this site. I know about corporate law, but doubt I can cover in sufficient space the possibilities of stuff going wrong and you being sued personally and losing everything if you get unlucky.
www.law.uc.edu/CCL/
 

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