Brian Virts wrote:
I switched to an LLC earlier this year, legalzoom was incredibly simple. I'm not sure why I had to buy an "registered agent subscription" though for $150 a year. They say it's nice to have? Anyone else get that?
I was tricked into that too. You don't need it at all they just want your money. Call and cancel that.
TTLKurtis wrote:
I was tricked into that too. You don't need it at all they just want your money. Call and cancel that.
Apparently you need to have a registered agent as part of the LLC? It does sound like BS, I actually called and demanded a refund, but if you accept it on the application, you have to pay for it. Very deceptive, I'm not saying I'm a fan of legalzoom or anything here, they do offer a fast and easy service, but they are not very honest and seem to prey on people that don't necessarily know everything about the process.
joelconner wrote:
You MUST have your biz and your personal self separated with an LLC, S-corp, or something like that. It is just too big of a risk to not do it...even with insurance. You could lose everything...and them some...if you don't.
Have you ever heard of a story, or do you know anyone, who has ever lost everything? or even close to everything? I personally don't know anyone who's ever had to use liability insurance.
Do I have liability insurance? of course. I know it's not worth the risk, but I'm just saying.
Brian Virts wrote:
Apparently you need to have a registered agent as part of the LLC? It does sound like BS, I actually called and demanded a refund, but if you accept it on the application, you have to pay for it. Very deceptive, I'm not saying I'm a fan of legalzoom or anything here, they do offer a fast and easy service, but they are not very honest and seem to prey on people that don't necessarily know everything about the process.
You can cancel, I did. You can be your own 'agent' you don't actually have to do anything it's BS. Keep bugging them until they let you cancel they are just trying to keep your business.
Jeff Simpson wrote:
Have you ever heard of a story, or do you know anyone, who has ever lost everything? or even close to everything? I personally don't know anyone who's ever had to use liability insurance.
Do I have liability insurance? of course. I know it's not worth the risk, but I'm just saying.
I sure do...multiple stories. All people that I know personally. None of them are in the photography industry, but business is business. The 3 people I know personally were in the food industry, real estate, and commercial cleaning. Sorry...just remembered another. Construction.
EDIT: As as fyi, I am a 4th generation business owner in my town, and my father is a very well known person in our city because of our family's restaurant. So, we hear a lot of things from a lot of people. These are just the 4 stories that I can connect to actual people that I know. I am sure that I have heard more than that over the years, but these are the ones I remember off the top of my head.
I know of stories, you hear of them from time to time. Bride hates photos, sues photographer. It definitely happens in this world of liability and lawsuits, you have to protect yourself as much as possible. I was a sole proprietor for the first two years of business, this year it just made sense to add that layer of liability protection to grow the business.
I worked as a paralegal in a firm that represented insurance companies and their clients sued after fender benders, slip and falls, etc. I can't stress enough how important it is to keep layer of protection between you and your personal assets and your business.
jcolman wrote:
Not really. I could lose my home, 401k, savings etc if something really bad happened. A couple mil in insurance may not be enough.
I generally find that you'd be hard pressed to find a judge or jury that says ruining a wedding day is worth over 1-million dollars. Ultimately, if you delivered late on your contract? A few thousand. If you under-delivered due to a card going bad, etc., Maybe $10-25k?
People will sue for all sorts of reasons, but insurance companies make it their job to settle out of court if at all possible to avoid legal expenses.
Then again, having that LLC is definitely a nice "last resort" fall-back option, in case insurance denies coverage (because, they, that's their job, right? DIS-insurance?). Also, if you own a home or have a family, it's definitely a safe bet.
Jeff Simpson wrote:
Have you ever heard of a story, or do you know anyone, who has ever lost everything? or even close to everything? I personally don't know anyone who's ever had to use liability insurance.
Do I have liability insurance? of course. I know it's not worth the risk, but I'm just saying.
Having an LLC is not a last-resort... that should be one of the first things you do when you decide to start a business. Any kind of business. You have to be retarded not to spend $50 or a couple-hundred or more (depending on how you do it) to set up a real business for yourself. Absolutely retarded.
In Reference to judges awarding monies for substandard performance:
Your reference is to an error's and omissions claim, not general liability. The limits of your policy have no bearing on the limits of a lawsuit. You and your personal property become fair game for any loss/settlement amount above and beyond you liability insurance limits. Your insurance policy will only cover you to the extent of your stated limits, and in many GL policies, that amount includes cost of defense. The LLC places your personal assets out of the reach of such actions. It also has other legal ramifications however, and you should consult an attorney regarding the laws in your state and your personal circumstances. You can then make an educated decision regarding whether or not you need additional assistance regarding a LLC or feel secure in handling the matter yourself. The cost of a 30 minute session might just save your bacon. A parent claiming that your studio flash permanently damaged a newborn's eyesight or a passerby in the park tripping over your bag while you shoot an engagement session and claiming sever injury are just a few examples of the type of things that can be claimed against your liability policy, and the limits of your policy will have no bearing on the amount the claimant's attorney will file for against you nor the amount a jury can award.
TTLKurtis wrote:
Having an LLC is not a last-resort... that should be one of the first things you do when you decide to start a business. Any kind of business. You have to be retarded not to spend $50 or a couple-hundred or more (depending on how you do it) to set up a real business for yourself. Absolutely retarded.
Thinking you misunderstood him there. If I read what was said. I see him saying form an LLC, get insurance, but if for some reason insurance doesn't do the job you have your LLC as a last resort of protection.
I had my accountant set me up in '05 and was more than happy to pay his fee to do it. There is a value for piece of mind knowing things were done right. And if you have any questions you don't have to sift through the web to figure out whats right and current. As for my annual filings, I only pay something like $25 unless I report a change of address, and I don't need a lawyer to do it. Of course, every state is different. YMMV
yea. incorporate.com automatically enrolls themselves as your registered agent as brian and Kurtis both pointed out.
You don't need it. You just make yourself your own registered agent.
mjgphotoz wrote:
In Reference to judges awarding monies for substandard performance:
Your reference is to an error's and omissions claim, not general liability. The limits of your policy have no bearing on the limits of a lawsuit. You and your personal property become fair game for any loss/settlement amount above and beyond you liability insurance limits. Your insurance policy will only cover you to the extent of your stated limits, and in many GL policies, that amount includes cost of defense. The LLC places your personal assets out of the reach of such actions. It also has other legal ramifications however, and you should consult an attorney regarding the laws in your state and your personal circumstances. You can then make an educated decision regarding whether or not you need additional assistance regarding a LLC or feel secure in handling the matter yourself. The cost of a 30 minute session might just save your bacon. A parent claiming that your studio flash permanently damaged a newborn's eyesight or a passerby in the park tripping over your bag while you shoot an engagement session and claiming sever injury are just a few examples of the type of things that can be claimed against your liability policy, and the limits of your policy will have no bearing on the amount the claimant's attorney will file for against you nor the amount a jury can award....Show more →
One question - how much more work is required throughout the year as an LLC vs. sole proprietor? I mean as far as filing this or that, taxes, etc.. go?
Thanks.
DigMeTX wrote:
One question - how much more work is required throughout the year as an LLC vs. sole proprietor? I mean as far as filing this or that, taxes, etc.. go?
Thanks.
brad
Your accountant/lawyer ought to be able to handle it at the end of the year. Really doesn't require more of you on a daily basis.
I see a direct correlation between the people on this planet who walk around in rose colored glasses, lalalala, to them being the most victimized by others around them. It's not negative to protect yourself against risk, it's just smart.
Just make sure you keep everything separate. A LLC only protects you provided there are clear lines of separation and prevents anyone from piercing the corporate veil in possible legal actions.
I place a limit of financial liability in my contract fine print making me liable for the final payment if anything happens. To be honest I don't know if this would hold up in court but the only thing that worries me more than a freak image loss incident is a freak injury caused by someone tripping over my gear or light stand.
