San Francisco, CA asked in Business Law for California

Q: Do I need an LLC for a homemade mask making business?

A friend convinced me that I needed an LLC to sell homemade masks to friends and family or on Etsy. He says there will be tons of lawsuits against mask makers if people get covid. Do you think this is a serious risk to my little homemade business, even if I have a disclaimer saying these masks are not medical grade and not intended to prevent disease? I did get the LLC and now got a huge $800 bill that I didn't know was coming. Personally, I can't imagine that I would really need an LLC for this. I'm not making very much money. $800 is a lot. I don't know if I should just pay it or if I should cancel it. What do you think?

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1 Lawyer Answer
Shawn R. Jackson Esq.
Shawn R. Jackson Esq.
  • Rohnert Park, CA
  • Licensed in California

A: Well ... as a general rule, you will want three "hurdles" between you and the litigation attorneys. [1] a legal entity like a corporation or LLC ... [2] good insurance and ... [3] good management/disclosure protocols. Most of the time, a litigation attorney can get over two of the "hurdles" ... and may be satisfied with the insurance proceeds. So, the short answer to your query is YES, you will want legal entity like an LLC helping to protect the safety of your personal assets against various business liabilities. You will want to engage in at least two-three video calls with at least three attorneys of your choice ... for those free initial consultations.

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