Can a home construction contractor have an LLC?
July 31, 2008
I heard about a home construction contractor who is in quite a bit of personal debt because of not having insurance on a job he had completed which he was later sued on… Could he have had an LLC for this type of business? I’m just wondering if fifty dollars could have protected him from hundreds of thousands of dollars of personal debt…
Anyone can file a LLC through the state. So sure. It may cost more than $50 though to set it up properly
It sounds like an insurance policy would have done him more good than the LLC. If you’re willing to fill out the application and come up with the articles of organization yourself, the filing fee is $105 where I live to from an LLC. The best plan is to check with an attorney. While an LLC may offer some limited protection, the fact is, in many cases the trouble can still find you. Definitely get the insurance before the LLC.
Home insurance is actually very flexible. I don’t understand all the fine print of my home policy, but my homeowners insurance agent is always a phone call away. Try contacting your agent or a agent in your area. They will be able to help you.