Sole Proprietorship or LLC?

[kennethbosworth]

I have a friend who is planning to start a massage business. She is a licensed therapist. She already rented a place and will be hiring 2 independent massage therapists and she herself will perfom massages to clients.

Now shes, thinking if she would consider sole proprietorship or a corp like LLC?

If one of the contractors did something illegal(like sexual massage, etc,) would she be responsible for it

If the contractor hurt a client during massage, would she be responsible for it? Should that be covered by insurance or the contractor buy their own insurance.

Any help on this please...

[Ian J]

Originally Posted by kennethbosworth

If one of the contractors did something illegal (like sexual massage, etc,) would she be responsible for it
..

Yes

Originally Posted by kennethbosworth

If the contractor hurt a client during massage, would she be responsible for it?

Yes

Customers will be contracting with the business and not with the individuals working there so she would be liable for everything. Insurance is the answer and whilst she should consier LLC or sole trader for tax reasons I don't think that she will be able to hide behind a Limited company in the event of problems