Sole Proprieitor, LLC, Corp??

[kickballmvp2006]

I am going to do some websites for a couple people, but want to make sure I go about engaging the business with them in the correct way from a business/legal endpoint.

Sole proprietor is the most risky due to the a person being personally responsible for any allegations put forth on the business. But what I'm thinking is if your contract agreement that you have your client sign has a section in about legal stuff stating something along the lines that I'm not held responsible for loss of business, mistakes on the website, etc... then I should be fine. But I'm interested to hear any callouts on that such as loopholes, etc..

My friend told me LLC is a safe bet as the company is held responsible (as opposed to me personally).

I doubt a situation would ever happen where a client would want to take legal action on me, but if it were to happen, better to be safe than sorry.

[ksookma]

Even if you register as a corporation if you are a shareholder of the company you are ultimatly responsible for what happens within your organization. From a tax standpoint its best to just register as a proprietorship until you start making more than 10,000. I would then switch to a corporation for tax savings.


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