I will be selling and marketing solar panels for one company and merchant services for 2 others. If I do not form some type or corporation I will need a HIS license which will cost as much as the filling for llc. If I do form a business will I need a business license and should I use my name as the business or create a fictitious name and file dba
I’m sure they’ll be no shortage of people to disagree with me but I see no reason for you to form a separate entity to do sales. Who’s going to sue you? What are you trying to protect yourself from? I don’t think you even need insurance but they can never hurt to have extra protection in that department. But to protect your salary or your commissions? This makes no sense.
This is general advice. You are anonymous. If you PM me i won’t know what it’s about.
Strategy for formation of a business and choice of entity is always way more involved than a post on a question and answer forum. You need to retain an attorney to evaluate your situation and help you set up.
As a general rule solar sales companies get sued constantly. So either make sure you have a properly formed AND properly operated entity to maintain a corporate veil legally, OR make sure you have lots of insurance of the type that will cover you for any type of lawsuit you may get subjected to.
My responses on this website DO NOT constitute a consultation, nor do they establish an attorney-client relationship. Only a written retention agreement signed by client and myself will establish an attorney-client relationship. Please DO NOT message or phone me with further questions or comments as the discussions would be outside this forum and would not be visible to the public (the only exception to this being for serious prospective clients). If you have additional follow up questions or additional facts to add, re-draft them into a new question and repost it.
I agree with Mr. Areshenko that selecting a legal entity for a business isn’t a quick one-size-fits-all discussion that can be easily had in this forum. There are tax implications for each type. This means that tax deductions are available for some entities that aren’t available for others. As such, your tax advisor should definitely be involved in the discussion. That having been said, we need to be realistic and note that anyone who is in the sales business in California could be sued simply for being in the stream of commerce. Many of these lawsuits would be covered by insurance. But not every one will be.
The responses I provide on Avvo are for informational and educational purposes ONLY, and do not establish an attorney-client relationship between my law office and you [either the person posting the question or anyone reading the question and response.] Unless and until you sign a written retainer agreement with my firm, I am not your lawyer and my response does not constitute "legal advice." Instead, it is an analysis based on limited facts. If you want specific legal advice upon which you can rely, then I strongly recommend you retain an attorney in your state. I am only licensed in California. See also AVVO.com terms and conditions item 9, incorporated as if it was reprinted here.
You need some clarification in this specific regard going forward: AFTER you sit down and consult with a lawyer, remember that business insurance is necessary, but ONLY protects your business assets (post payment of any deductible) --not your personal assets. A business entity, once properly formed and maintained, protects your personal assets in any subsequent litigation. That's why, assuming your business model supports your goals, you should have both.
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