Should I form an LLC as an independent property inspector?
Question Details: A company has approached me to perform home inspections. Before agreeing, I am trying to figure out if an LLC is needed.
Forming an LLC is a very good idea. As the very term "limited liability company" implies, an LLC will protect your personal assets (e.g. money in personal bank accounts; home; etc.) from most business-related liability, such as if the inspection business violates a contract or is negligent (careless) in doing an inspection. While the protection is not absolute (no protection is) and you would still be liable for any debts you personally guaranty or for certain personal wrongs or acts of yours even if commited in the course of business (e.g. if you climb a ladder to inspect a roof and drop your flashlight on someone's head--you could be personally liable for your personal negligence in beaning someone with the flashlight), an LLC will protect you from most business related debts, obligations, or liability.