Legal Question in Business Law in Arizona

I am a stay at home mom that has been doing house/pet sitting (done this for friends, now getting recommend for others and not sure about liability with that) as well as tutoring and writing online/blogging as side jobs for a while and not make much money at it. I am starting to make more at all three jobs. I do not have a business or any licenses to date. I am wondering if I can start an LLC or sole proprietorship in which all three jobs are in one company or should they be separated into three businesses? Should I put it under my name or establish a separate business name for liability?

Asked on 7/29/13, 6:44 am

1 Answer from Attorneys

Donald Scher Donald T. Scher & Associates, P.C.
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It is a good idea to form a corporation or LLC for your small business, and you can include all of your personal services in the one legal entity. You become an employee of that legal entity and receive a paycheck when you take salary from the company for your work. Not only do you avoid personal liability (when a customer makes a claim) there are other advantages of having a separate legal entity, both financial, tax and personal. Note, you must observe the fact that this is a separate legal "person" and treat the corporation or llc accordingly, or you will lose the benefits of having it. I recommend that you form such an entity, it is worth the time and expense.

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7/29/13, 2:17 pm

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