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LLC versus Sole Proprietor for online business.

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What is the name of your state? Iowa

I have just started on online business selling handmade soap. I am uncertain if my liability risks are low enough to operate as a sole proprietor or do I need to form a LLC. Also, do I need product liability insurance?

Thank you. Kevin



You have to be the judge as to how much risk of personal liability there is selling handmade soap. You are by far the best judge of that. All a lawyer can tell you is that if you determine that there is a significant risk and you have assets or income that you could lose, then first of all you should consider insurance. If that is too costly, or if it does not adequately cover the risk, then you can protect yourself with a LLC.

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