Business/Legal Concerns When Day Care Is Run Out Of Home That Is Not Owned By You?

I am starting a home daycare in my mother's home. Should I register as a sole proprietorship or LLC? I would want her home to be full protected in case of any legal issues. I am purchasing additional insurance with her current home insurance under Allstate. I myself do not have many assets in my name and the business would be solely under my name, I am just leasing space in her home. What is some advice on this topic? Thank you in advance

[TomCopeland]

Originally Posted by Unregistered

I am starting a home daycare in my mother's home. Should I register as a sole proprietorship or LLC? I would want her home to be full protected in case of any legal issues. I am purchasing additional insurance with her current home insurance under Allstate. I myself do not have many assets in my name and the business would be solely under my name, I am just leasing space in her home. What is some advice on this topic? Thank you in advance

Incorporating as an LLC or any other corporation protects you, not your mother. I recommend being a sole proprietor because it's less complicated. Your mother should be sure her homeowners insurance covers her home used for a business. You should get professional business liability insurance and list your mother as "an additional insured." Then, if someone sues your mother when a child gets injured, your insurance will cover her.

Get 1 million occurrence and 2 million aggregate coverage for your insurance.