Should your business be an LLC or corporation to avoid personal liability?

Attorney Tom Olsen: Here's a question. Robert says, "Would an LLC be the best route to protect personal assets for a drone business? What is a good liability amount?"

Folks, people are incorporating, whether it's a standard corporation or an LLC, generally for two reasons. One, is to protect them from personal liability. If you own this drone business and it's in a form of an LLC or a corporation, and that drone goes down and hurts somebody terribly, that person will be obligated to sue your LLC. They cannot sue you personally. That's the purpose of a corporation or LLC, to avoid personal liability.

Number two, there are some tax benefits to being an LLC or corporation when you labor yourself as a subchapter S corporation. For this text here, it's saying, "Hey, should my drone flying business be an LLC?" Absolutely, positively, no ifs, ands, and buts about it. You should do that. Hopefully, that will answer the question for you.

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