Thinking about starting a coin-op pinball business

[toyotafan]

What is the name of your state (only U.S. law)? Illinois

So I've done some background research of others that have done something similiar, but laws and costs vary quite a bit by state. Everyone says you're foolish not to have liability insurance because anything can happen:
1. the device can catch on fire and cause property / life damage
2. Someone can tip it over and crush a person (300 lb device on legs, doesn't take much force)
3. If someone gets in a fight and ends up banging their head on your machine, everyone will get sued (including the person who owns the machine)

Many people forego insurance because it's a tough business to make profit from as it is (on top of being taxed to death), but I'd rather not risk it so..
Basically it seems as though I have 2 options:
1. Get insurance for between $200-$300 per year, which sounds like it covers between $2M-$3M plus $10k medical no questions asked
2. File an LLC for between $400-$750 (One time fee I assume), and if there's a lawsuit it goes against the LLC (which would have such low funds so nobody in their right mind would bother filing a lawsuit). Better question is, does LLC completely protect me from lawsuits as an individual?

Joe

 

[Zigner]

What is the name of your state (only U.S. law)? Illinois

So I've done some background research of others that have done something similiar, but laws and costs vary quite a bit by state. Everyone says you're foolish not to have liability insurance because anything can happen:
1. the device can catch on fire and cause property / life damage
2. Someone can tip it over and crush a person (300 lb device on legs, doesn't take much force)
3. If someone gets in a fight and ends up banging their head on your machine, everyone will get sued (including the person who owns the machine)

Many people forego insurance because it's a tough business to make profit from as it is (on top of being taxed to death), but I'd rather not risk it so..
Basically it seems as though I have 2 options:
1. Get insurance for between $200-$300 per year, which sounds like it covers between $2M-$3M plus $10k medical no questions asked
2. File an LLC for between $400-$750 (One time fee I assume), and if there's a lawsuit it goes against the LLC (which would have such low funds so nobody in their right mind would bother filing a lawsuit). Better question is, does LLC completely protect me from lawsuits as an individual?

Joe

An LLC won't completely protect you, as the plaintiff will do their best to pierce the corporate veil.

 

[TigerD]

What is the name of your state (only U.S. law)? Illinois

So I've done some background research of others that have done something similiar, but laws and costs vary quite a bit by state. Everyone says you're foolish not to have liability insurance because anything can happen:
1. the device can catch on fire and cause property / life damage
2. Someone can tip it over and crush a person (300 lb device on legs, doesn't take much force)
3. If someone gets in a fight and ends up banging their head on your machine, everyone will get sued (including the person who owns the machine)

Many people forego insurance because it's a tough business to make profit from as it is (on top of being taxed to death), but I'd rather not risk it so..
Basically it seems as though I have 2 options:
1. Get insurance for between $200-$300 per year, which sounds like it covers between $2M-$3M plus $10k medical no questions asked
2. File an LLC for between $400-$750 (One time fee I assume), and if there's a lawsuit it goes against the LLC (which would have such low funds so nobody in their right mind would bother filing a lawsuit). Better question is, does LLC completely protect me from lawsuits as an individual?

Joe

I realized that I read this on my Macbook Pro and had to go back and re-read to see what I missed.

You want to spend money on a coin-op pinball business. You don't need an LLC - you need hospitalization. Pinball's viability as a business ended around 1972. Instead of going into this business, send me all your money. I'll send you a pocketful of change every month for six months then send you 1/4 of your money back. You will make three times the money with me than you will investing in this business.

Please, tell me this is a troll and not an actual business idea.

DC

 

[Esto Perpetua]

Many people forego insurance because it's a tough business to make profit from as it is

1. Get insurance for between $200-$300 per year, which sounds like it covers between $2M-$3M plus $10k medical no questions asked

If people in the business even consider forgoing insurance because $200-$300/year will make it hard to turn a profit, perhaps that's a clue this isn't really a business you want to be in.