Congrats on making a decision!

Gold stars for learning that an LLC isn’t right for your business

One of the most common questions I get from all creative businesses (and by all, I mean those just starting out to those that have been in business for more than 5 years), is,

“In order to be legit, what are the bare minimum legal tasks I have to do?”

This is why I put together a free email course designed to help you tackle the five legal tasks I think are a must-do for every creative business.

And spoiler alert, you’ve already completed Task #1! So look for Task #2 to land in your inbox tomorrow morning.

In addition to helping you eliminate doubt that there are legal tasks you should be doing, I wanted to share with you two ways you can protect your business and limit your liability since an LLC isn’t right for you now.

#1: Contracts

One common way to limit your liability is by adding what’s called a Limitation of Liability section to your contract. 

This section outlines the maximum amount you could owe the other side if something goes wrong. 

This is used ALL the time by big companies. For example, Meta limits their liability to $100 or the amount you have paid them in the past twelve months. MailChimp limits their liability to no more than what you paid them in the previous month. 

There’s no reason that you can’t do the same with your clients and customers.

(Want help creating a contract you love (and that protects your business)? We’ve got a course for that here.)

#2: Business Insurance

The second way you can limit your liability is by obtaining comprehensive business liability insurance. 

These policies usually are very inexpensive. And as a bonus, one of the lessons you’ll be getting in the 5 must-do email course helps you get business liability insurance!

In the comments below let me know how your perception of when it’s time to become an LLC has changed.