Should I get LLC?

This is a discussion on Should I get LLC? within the Business and Financial Law Questions forums, part of the Legal Questions & Answers Forum category; Hi. I need a simple legal expertise and advice. I'm planning on making and selling handmade leather watch straps. It will probably be more for a hobby than business, since ...

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  1. #1
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    Should I get LLC?

    Hi. I need a simple legal expertise and advice. I'm planning on making and selling handmade leather watch straps. It will probably be more for a hobby than business, since I don't have a whole lof time to mass produce anything. Custom straps have been a passion of mine for some time, and I always enjoyed making them when I have the time. I plan selling a few on line, through various websites, such as eBay or etsy.com that cater to handmade goods.

    However, I imagine that there might be some legal implications; in rare cases, the strap might actually break and end up damaging a very expensive watch. Let say a $20,000 Rolex. This is a worst case scenario, of course, and some might even consider it paranoia. But it is not entirely imposible to overlook a piece of leather that is brittle or defective before it is made into a stap.

    In either case, should one even bother with getting a business license, insurance and obtaining a LLC certificate? Filing for LLC here in California is $800 per year I was told. This is very expensive, considering my profit might be very little. I'm wondering if it's worth the time and money for small scale operations.

    Bottom line is--can someone sue me for selling a watch strap on eBay--if somehow it ends up damaging their watch?

    Thank you so much!


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    Yes it is possible that you could get sued for selling a defective watch strap that damages a watch and it is good that you thought about this possible implication. I always recommend individuals obtain liability protection as you never know what can go wrong and you don't want to be personally liable. As far as an LLC goes, you can register one in another state, it does not have to be in California. If you register it yourself, you will save on attorney fees but make sure you know what you are doing. Whether paying a few hundred dollars is worth it for you since your profit will be small, that is a business/financial question for you to determine.
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