Go-kart business liability questions

[Kaiba]

What is the name of your state? Michigan...that's right Michigan

I am in the process of making a go-kart business. It would involve people of 16+ renting carts(or time on the carts, same difference) to drive around a track. I have three questions.

1). What can I do to lessen my liabilities as a business if someone is injured, and reduce the chances of a successful lawsuit against me?

2). Is an insurance policy a requirement and approx. how much would it be yearly(I doubt it would get answered, but I am just looking for how many zeros... you know 1,000's ... 10,000's)?

3). Anything else I should know?

P.S. Thanks in advance... hope I used the right words.

 

[loku]

There are three things you can do to lessen your personal liabilities: (1) provide a safe environment, (2) get insurance (sorry, I don’t know the cost), and (3) form a corporation or llc for the operation.

for most small businesses, the best and easiest way to limit personal liability is with a Limited Liability Company (LLC). It protects you as well as a corporation would, but with much less formality. It is also much easier to form and maintain.

Before starting a business, I would highly recommend you read the FreeAdvice material at http://business-law.freeadvice.com/starting_a_business/ , and then go to the excellent Small Business Administration sit on Starting Your Business at http://www.sba.gov/starting/ . Particularly see their “Startup Kit.”

Furthermore, since the business you plan is fairly high-risk as far as public injury, I suggest you at least confer with an attorney to find out how to run a corporation or llc so as to shield you from personal liability.