Insurance for a small business partnership?

Question

Business: event coordinating

Location: Home (Michigan)

Lord forbid it ever happen but want to be protected from being sued and protection of our personal assetts

Answer 1

You can for an LLC, Limited liability Corporation.

Limited liability, meaning that the owners of the LLC, called "members," are protected from some liability for acts and debts of the LLC, but are still responsible for any debts beyond the fiscal capacity of the entity.

http://en.wikipedia.org/wiki/Limited_lia...

Answer 2

In addition to considering an LLC you should get a comprehensive general liability (CGL) policy for your business.  $2,000,000 is the norm here in Ontario.

I would also suggest that the two of you enter into a legal partnership agreement outlining certain what ifs: death, disability, or you just don't like each other anymore!  Part of the agreement would be how you would buy each other out if things change.  Life and Disability insurance would be part of the agreement so you can buy your partner's family/estate out if she dies - otherwise her(or his) heirs become your partner and you might not like that.

And don't overlook the "don't like each other anymore" possibility.  At the beginning of any relationship it is always rosy.  But things can change!

Check out http://www.canada-insurance-source.com/O... for more considerations for your business.

Good luck with it!