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Colorado

Business Structure

This topic contains 1 reply, has 2 voices, and was last updated by  David Crabill 10 years, 2 months ago.

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  • September 9, 2014 at 4:14 pm #12836

    Naomi Hubert
    Participant

    I read that my cottage food business must only be a sole proprietorship. But would registering my business as an LLC, while still keeping the tax benefits of a sole proprietorship qualify my business as a sole proprietorship.

    If not, how are food cottage businesses protected from business liabilities (as in an LLC)?

    September 10, 2014 at 3:19 am #12881

    David Crabill
    Keymaster

    I would say that getting insurance will protect you more than an LLC would. If you haven’t already, you’ll want to read these FAQs:
    http://forrager.com/faq/#insurance
    http://forrager.com/faq/#llc

    I do not think you can do what you suggested. However, it’s worth noting that the “no LLC” info came from this report, which seems extremely well-researched. I still haven’t officially heard this limitation from the health dept itself.

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