Some people don’t feel fulfilled unless they are feeding others. They feel so strongly about this mission that they make it their livelihood.
Everyone in food service knows there is more to success than pleasing customers. Competition is fierce, and businesses must deal with different kinds of risk. You want to take steps to insure against legal risks, and one way is to build upon the right legal structure.
Food service has many faces
The food service umbrella covers a host of businesses:
- Coffee shops and cafes
- Fast food franchises
- Pizza parlors
- Ice cream shops
- Catering businesses
- Food trucks
- Candy shops
They all have one thing in common – vulnerability to lawsuits and debt problems.
Your business has a better chance of succeeding when you protect yourself from financial attack when it is drawn up as a limited liability company (LLC).
A shield against business risk
You probably came up with your great business idea as a sole proprietor. While that is a natural way to start, it can be dangerous when financial challenges arise. As a sole proprietor your personal assets mix in with your business assets — your home, your investment accounts, your car – they are all at risk from lawsuits and debts.
Setting up a limited liability company is powerful armor against legal challenges. Let’s say a diner slips and falls on your dining room floor. He can sue you for a slip-and-fall injury. As a sole proprietor, you are very vulnerable to such a challenge. If your business is an LLC, the danger stops at the walls of your business. Your personal assets are secure.
Protecting personal assets is the most effective way to insure you against business liabilities.
There’s more that you need to do as well. You must cultivate good bookkeeping habits, separating you from your business. And you should insure your business against loss.
Setting up an LLC yourself can be a headache and if you make a mistake you can be exposed to liability or adverse tax consequences. At Latrobe Law Associates, we have set up businesses for many entrepreneurs. Business set up packages start at $650, plus costs.