Do I need Business insurance?

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What is the name of your state? Minnesota

Im planning my own business (with no employees) selling romantic items, lotions, massage oils, including adult toys at home parties- in the homes of the party Hostess. Similar to how tupperware parties run. Do I need business insurance? What kind? Does the type of product Im going to sell have an effect on the type of Insurance I should buy? One last question is should I stay as a sole proprietor or become an LLC? I am buying the products from a wholesale company then reselling to my customers.

Thanks for any advice,

Amy

 

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Do I need business insurance?

Do you have the resources to defend yourself (and pay off any adverse judgments against you) if you are sued? If so, then maybe you don't need insurance.

What kind? Does the type of product Im going to sell have an effect on the type of Insurance I should buy?

An insurance agent can help you with these questions.

last question is should I stay as a sole proprietor or become an LLC?

Well, with a sole proprietorship, you have the advantage of no formalities, and tax issues are usually less complicated, but the disadvantage is that you have unlimited personal liability if anything goes wrong.

An LLC requires certain formalities to set up, requires certain ongoing formalities, you have to keep personal and LLC finances separate, and tax issues are more complicated -- but if you follow all of the rules, you can avoid personal liability if something goes wrong -- only the LLC's assets are at stake.

You should probably sit down with a local attorney who can review your situation and advise you accordingly.