What are the pros and cons of opening a new GL policy for an small boarding operation vs adding the LLC as a covered entity to a personal GL policy? Is there any difference?
Thank you!
I never mixed personal and business assets, never.
Mixing the two causes the line of demarcation to become cloudy if not impossible to distinguish which is which.
When I had my farm set up as a C Corp the farm leased the grounds and buildings from us personally. Lease payments to us by the farm were not subject to Social Security or Medicare taxes. The Farm had it own bank and credit accounts (if any those were in the corporation’s name). Also made most of the improvements a business expense rather than an out of the pocket personal item. For the Person, the barns became a deprecating asset.
We did not want there to be a question as what was what in case there was an issue.
Farm boarded my business’s horses which were used to promote my business. That Business paid the Farm a hansom sum for the care of its horses, those payments again were an expensive item for my business rather than wage or salary.
Each business filed its own taxes and other reports… just paperwork that made sure there was no cross over connections between the parties other than business relationships.
These were set up to be firewalls between the businesses and personal assets.
