# LLC/Business questions



## marrey25 (Nov 8, 2016)

Hey Im new to catering and i was just wondering some business related things that i would need to concern myself with for those of you with experience in those matters. Im currently starting a small catering business in Texas. I use a rental commercial kitchen and Im mainly doing small weddings and private parties. I am just one person in this venture.I was wanting to grow and take another step but not too familiar with business and what i would need.

Should i get an LLC? What are positives and negatives

Do i need any type of insurance?

Please help or feedback.


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## laurenlulu (Sep 9, 2012)

SCORE is a group of local businesspeople who volunteer to help others start a business in your community. They would be an invaluable source of information for you and know your local laws.


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## mlejeune (Dec 2, 2016)

An LLC is a great and fairly inexpensive way to "incorporate" your business. The biggest advantage to this is separating your personal assets from your business assets. So for example, if someone sues your company, they sue your LLC and can only go after it. Without an LLC, you could be sued personally for issues. That's the top reason that people incorporate when they are a small business.

Check out: http://www.sos.state.tx.us/corp/ for more information on how to incorporate in Texas. There's a ton of information on which entity to choose. And you can do this online. Do NOT hire a company to do this for you. They typically charge $500 to $1,000 on top of the filing fees for basically filling out the paperwork.

Michael

Champaign Catering

champaigncatering.com


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## jimyra (Jun 23, 2015)

laurenlulu said:


> SCORE is a group of local businesspeople who volunteer to help others start a business in your community. They would be an invaluable source of information for you and know your local laws.


This the best advice you can get.


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## granola girl (Mar 8, 2015)

I have an LLC. then I got a DBA. (my Chase Business Banker helped me with this step). I recommend you open a business bank account. Tie a credit card to it and use it for all your biz purchases. Makes tax paperwork easier.
Yes, use SCORE, they are great, a wealth of info. Yes, you must get liability insurance. I recommend you look into FLIP. much cheaper than others.


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## panini (Jul 28, 2001)

Nice to see SCORE mentioned so many times. Although it has been restructured, I've been associated with them for a while.
Take any acronym, LLC, DBA, etc. Non of them releases you from reasonable liability. These letters do not mean that you have any type of protection. I laugh when i hear a newbie say I'm going for an LLC, this way no one can sue me or I'm protected and won't have to pay a dime. The word Justice, is just that. No matter what initials you may have or payed for, If you have wronged someone and common sense dictates you should compensate, than that's what takes place. Sure an LLC may mean if the vendor has no assets then it's not worth getting a judgement they cant pay.
I've been in business my whole adult life, and I'm an old fart now. I've had insurance to cover insurance. Times have changed with such a litigious environment, meaning, INSURANCE IS A GREAT THING TO HAVE, UNLESS YOU NEED IT!
Common sense insurance is usually affordable based on the cost of doing business. If your a vendor delivering to a property, the property will usually require liability insurance which isn't outrageous. As far as one insurance being so much cheaper than another, I've learned the hard way, there is a reason for that. they are all pretty much the same. Deals are usually had when you bundle.
Please let me add, insurance becomes more important when the knowledge of what business you are entering is not.


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## jimyra (Jun 23, 2015)

I think I read that a Limited Liability Company was to protect partners or investors. If a partner or an investor invests a certain amount of money in a company and has no part in management of the company the investors liability is limited to their investment. Any comments?


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