To expound on point 1, maintaining corporate protections is not a one-time deal. You also need to follow the required corporate formalities on an ongoing basis.
For point 3, it could be rational to go without general liability insurance in some cases—e.g., where the risk is low, the organization has little in the way of assets, and any person with potential personal liability has few assets without a substantial income. Being “judgment-proof” is a viable defense strategy, or at least “judgment-proof” enough that litigation would cost the plaintiff more than they could reasonably hope to collect. Whether having adequate insurance to cover risks borne by third parties is a moral obligation is an exercise left to the reader.
Other insurance considerations: if you regularly use your personally-owned automobile for business purposes, you should probably discuss that with an insurance agent in addition to discussing a general liability insurance policy. Also—I think most EAs are in pretty low-risk lines of work for worker’s compensation, but it is available (and sometimes required) for organizations with a single employee.
To expound on point 1, maintaining corporate protections is not a one-time deal. You also need to follow the required corporate formalities on an ongoing basis.
For point 3, it could be rational to go without general liability insurance in some cases—e.g., where the risk is low, the organization has little in the way of assets, and any person with potential personal liability has few assets without a substantial income. Being “judgment-proof” is a viable defense strategy, or at least “judgment-proof” enough that litigation would cost the plaintiff more than they could reasonably hope to collect. Whether having adequate insurance to cover risks borne by third parties is a moral obligation is an exercise left to the reader.
Other insurance considerations: if you regularly use your personally-owned automobile for business purposes, you should probably discuss that with an insurance agent in addition to discussing a general liability insurance policy. Also—I think most EAs are in pretty low-risk lines of work for worker’s compensation, but it is available (and sometimes required) for organizations with a single employee.