Should I have an LLC?

The short answer to whether or not a family child care provider should set up an LLC (Limited Liability Company) is no. Most providers consider setting up an LLC to try to reduce their personal liability risk in case a child is injured in their program. The problem is that it's not clear that having an LLC will give you some additional liability protection. Lawyers I've spoken with have said that being an LLC is not necessarily going to give you additional protection. Your best bet is to stay a sole proprietor (self-employed) and get a lot of business liability insurance coverage ($1 million per occurrence and $2-3 million aggregate). I cover the topic of LLC and other legal and insurance matters in detail in my book Family Child Care Legal & Insurance Guide (www.redleafpress.org). Tom Copeland

THANK YOU Tom!