Legal Question in Business Law in Minnesota

LLC or Sole Proprietorship?

For a Minnesota fitness business planning to hire independent contractors to provide in-home personal training services. The main concern is liability.

If we hire a trainer contractor and the contractor does something negligent are we, as a business liable for damages? Or is the contractor the one legally on the hook?

It seems to us that if we can be sued by any clients our contractors work with then we need the protection of an LLC. Any thoughts?

Asked on 9/27/12, 8:56 am

2 Answers from Attorneys

Daniel Reiff Reiff Law Office

I have many thoughts on this issue. In fact, I have way too many to put them all down here. Whether you are responsible for something your independent contractor does will depend on a host of issues, and there are not nearly enough for me to say with the limited facts here.

That said, liability is a legitimate concern. I highly suggest you hire an attorney to go over things with you. At this stage, an ounce of prevention is worth about five pounds of cure.

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Answered on 9/27/12, 9:13 am

David Anderson Anderson Business Law LLC

3 Firewalls Needed:

1. LLC

2. Business Insurance

3. Proper Contract language (w/ Both contractor & customer)

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Answered on 9/27/12, 12:05 pm

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