QUESTION
Should an independent contractor create an LLC?
Asked on May 02nd, 2016 on Business Law - Texas
More details to this question:
My husband is an independent contract courier. He gets calls/jobs from Couriers of San Antonio (COSA). COSA provides him with a 1099 at the end of the year. He delivers items (car parts, paperwork, etc.) as needed throughout South Texas. He uses his own vehicle. Our auto insurance agent is quoting a "commercial" auto policy on his vehicle. She has also suggested looking into creating a business/LLC for the work that my husband does. Is this necessary?
1 ANSWER
Is it necessary? No, but it may be advisable. The main reason that people conduct business through entitles is to limit their liability, so that the obligations of the business don't impact their personal assets (although, of course, some people will only deal with the business entity if its principal personally guarantees the obligation).
Answered on May 03rd, 2016 at 7:22 AM