I want to start a tour guide business. What steps do I need to take to ensure I won't be sued?

First, in California you do NOT want to operate a business through an LLC. You may consider incorporating the business (forming a s-corporation), but unless you properly form, organize and maintain the corporation you will still be personally liable for the business debts and obligations. Over 80% of all corporations in California are “pierceable” because their owners use some online company to file the articles of incorporation and then simply put the book on a shelf. To learn more about what is required, please see my article on how to form a California corporation ( http://www.yourlegalcorner.com/newsite/articles... ) and on how to maintain a California corporation ( http://www.yourlegalcorner.com/newsite/articles... ). Second, you will need to acquire various insurance policies including but not limited to a general liability policy, and umbrella policy on you auto coverage. Third, you will need to have a business attorney prepare an appropriate contract with your patrons that requires them to acknowledge certain risks. Disclaimer. The information provided above is general information, does not constitute professional legal advice, and does not create an attorney client relationship. I am a corporate-business, employment and real estate attorney. If you require further legal assistance, please do not hesitate to visit my website ( http://www.yourlegalcorner.com or to contact me directly at 818-849-5206, or by email at: [email protected] .

To avoid personal liability for business endeavors, it would be helpful to discuss incorporation with an attorney in your jurisdiction. Incorporating your business, such as filing as an (LLC) Limited Liability Company or S-corporation can provide your business with a 'corporate veil' in which the business owners' individual assets can be protected from liabilities incurred in the scope of business activities. If you are currently operating as a sole proprietor, personal assets are in jeopardy if there is a lawsuit against your business because there is no legal separation between your business and your personal assets; therefore, incorporation would be highly recommended. Even if you choose to incorporate, general liability insurance for your business is very important in the event of the unexpected. Although you have indicated that the patrons are often times paying by donation, liability insurance still remains criticial in the case of negligence on the part of you or your business. You can and should utilize properly drafted release/waiver documents to ensure that patrons are aware of the personal risks they are taking and accepting. However, waivers/releases are not fool proof aned cannot eliminate the risk of negligence on your business' part. In summary, I would highly recommend incorporation of your business to protect your personal assets as well as carrying adequate liability insurance for the unexpected. Then, it is important to implement solid policies and procedures within your company to ensure the safety of your customers and employees.

Mr McNeice gives you some excellent advice, but I want to add one thing - NOTHING will "ensure" that you won't be sued. The issue is whether you could successfully defend against a suit. With a business that is set up properly, with properly drafted waivers, etc, you stand a much better chance of successfully defending against any suits.