Someone starting a new business will do well to limit their liability exposure by forming either a corporation or an LLC.

QUESTION.
I have worked for 18+ years in electrical contracting (electric, heating, & plumbing). I want to start up a business on my own, but also want to protect myself legally. I have secured an insurance policy but need to know more about setting up this business to protect my assets. I plan on incorporating in September. Can you give me any specific areas that I should be aware of?

ANSWER.
From your email question I am not sure whether you are asking me how to limit your liability exposure or how to start your business properly. If you want to know how to limit liability you can form either a limited liability company (LLC) or form a corporation. Of course, you will want to have some liability insurance, too. The insurance will cover a small claim so you will not have to shut your business down. The LLC or corporate form protects you from losing your house (if you have one), but the company might have to be liquidated if the claim is big enough. For that reason, you never want to have too much invested in your company. But your email sounds like you want to know what you need to do to start your business. You need a written business plan for starters. See PICK A BUSINESS

WRITE A BUSINESS PLAN

You may want to take a look at the following book, too? See STRUCTURING YOUR BUSINESS.

Consider contacting your local SCORE chapter and scheduling a 1-hour face-to-face session with two volunteer counselors. At SCORE we are business coaches and excel at helping wanta-be entrepreneurs create great business plans for their new ventures. See http://www.score.org/findscore/chapter_maps.html and input your home zip code to find the chapter nearest to you.

I've given you some things to think about. Good luck! Regards, -Jeff

Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com