LLP vs LLC: Which is best for your business?

An LLP (limited-liability partnership) and an LLC (limited-liability company) are two different things. The LLP protects business assets from the negligence of another partner. Only the assets of one partner are liable if he or she is sued for negligence. LLP vs LLC Common LLP businesses include law, accounting and architecture firms.

How to Form an LLC

If you do not want to be held responsible for the actions of your business partners, you should form an LLP. If an accounting firm has three partners who have equal ownership (33%) and one of them is sued by a client for negligence, the LLP will only hold that partner liable.


Tip LLPs can only be found in 40 states. It’s not available for certain professions if it is. California, for example, allows architects, lawyers, accountants and accountants to form an LLP.


How to Form an LLC

If you have partners in your business and are not eligible for an LLP (e.g. your state does not allow LLP formations), then you will need to create a multimember (multipartner) LLC. This will protect you from any business lawsuit or bankruptcy.

When to Use an Alternative

You might also wonder if you should create an S corp (S-corp) or a corporation (C-corp). Although technically an entity that isn’t a business, the S corporation can be a tax status that is favorable for small businesses. When you register as an LLC or corporation, you can choose S-corp tax status.

A C-corp formation is quite complicated and will require the assistance of a business lawyer. A C corporation is preferred by many companies because it allows them to raise capital from investors. C-corps are also required by law for companies with more than 100 shareholders or foreign shareholders.

LLP vs LLC: A Glance

Liability Protection All partners are protected against the negligence or wrongdoings of their partners Partners (members) cannot be held responsible for the negligence or wrongdoing of their partners
Tax Treatment Taxes on self-employment
Profits are passed through
Some states may have additional taxes
Taxes on self-employment
Pass-through is optional
Optional Scorp election
Some states may have additional taxes
Prices Formation fee: $40-$500
Annual filing fee: $40-$500
Additional State Tax: $0-$800
Formation fee: $40-$500
Annual filing fee: $40-$500
Easy Formation Additional paperwork is required to set up and professional licenses must be shown. It is easy to set up and one-member LLCs are possible
Additional Information The Pros and Cons of an LLP Pros & Con of an LLC

Liability Protection

The LLP protects one partner against the negligence, debt, or wrongdoing of another. If a client sues an attorney for negligence they are only liable for their capital investment in the company, and not all partners.


Note States have very different laws regarding LLPs. Some states require that all partners share the liability for a bankruptcy filing. Others don’t. For more information, check with the state’s official website for business registration or a local attorney.


Keep in mind these situations when the liability shield may be forfeited while you are forming your company.

  • You can be held liable if you defraud vendors, clients, or investors by operating a business.
  • Improper administration of the company: Failure to comply with the legal requirements for an LLC (such as holding annual meetings) can lead to personal liability.
  • Combining personal and business funds: You could be personally liable for any business activity if you keep company money in your personal checking.
  • Using personal funds to pay LLC obligations: Personally paying company bills could expose you to liability
  • Insufficiently capitalizing an LLC at startup:Forming companies without enough resources to meet their initial obligations may cause problems later.


The taxes for an LLC and an LLP are very similar. States often allow “pass-through” taxation. You will be subject to a 15.3% tax on self-employment for both. Your personal income tax bracket will receive the income after tax.

An LLC can elect S corporation status, which is the main difference between LLP and LLC in taxation. S-corp status allows a business owner to save taxes because they only have to pay 15.3% of the owner’s salary and not all income. This is known as a dividend. A dividend can save you thousands of dollars each year in taxes.


Free ebook: How to Start Your BusinessA step-by-step guide that will show you how to go form idea to launch your business in just 30 days 


The costs of setting up an LLC or LLP in most states are the same. You may need to pay an additional fee for an LLC. California, for example, charges LLPs an $800 flat tax annually.

Depending on the state you live in, the cost of forming an LLC or LLP can vary greatly. Here is a rough estimate of the cost.

  • Initial filing fees:$40-$500 (the fee to create an LLC).
  • Annual filing fees: $40-$500 (the cost to maintain an LLC current when you file yearly filings)
  • LLP annual state tax: $0 up to $800 (the additional tax that an LLP may be subject to)

How to Register an LLP or LLC

Both the steps for registering an LLC or LLP are similar. It is possible to register your LLC or LLP online via the website of your Secretary-of-State, or another official business registration site. These are the steps you need to follow if you want to register an LLC or LLP yourself.

  1. Get an Employer Identification number (EIN).
  2. Draft your partnership agreement if you intend to form a partnership.
  3. Visit the official website of your state for business registration.
  4. Send the articles of organization along with any other information.
  5. Select your registered agent.
  6. Document when your LLC or LLP must be renewed with the state.

Many business owners find it difficult to follow the legal steps on their state’s website for business registration. IncFile is an online legal service that can provide professional help. It will send your LLC and LLP documents directly to the state, free of charge, plus any applicable fees.

Visit IncFile

Bottom line

Both LLPs as well as LLCs are easy-to-use business structures and are great for those who are just starting a business. Both provide personal liability protection for their owners and are easy to set up and maintain. Generally, LLPs work best for certain professions while LLCs work better for all other types of businesses.

14 Strategies to Increase Profits

Most business owners are looking for ways to increase their profits. You can either increase your prices or reduce costs. What are the most cost-effective and affordable options, especially during COVID-19? These 14 strategies will help you and your company make more money in 2021.

1. 1.

Online sales increased significantly after the pandemic shut downs. Even after the pandemic, online sales will continue to grow. This is the perfect time to expand or move into online shopping.

To implement ecommerce, the first step is to make your website accept online orders. You will need an platform that allows you to accept online payments. These platforms can be added to your existing website. You can also add them to a separate site like Square.

Square is a payment processor that also provides a well-design ecommerce website for free.

Online sales are more than just accepting orders online. You will also need to offer curbside pickup or mailing delivery. You can also accept payments remotely.

You might also consider a delivery company and part-time driver job. This is particularly important for restaurants who need to offer online ordering.

2. Automate Business Systems

Automating processes is one way to increase efficiency and decrease costs. Software services or software that is good can automate everything, from inventory to payroll. This will allow you and your employees to focus on the tasks that are most important to your business.

You might consider automating these business systems:

3. 3. Improve Your Website

Your website is being used by people to research your company and make business decisions. How can you make their experience better and increase their trust in your company so that they are more likely use your product/service? Your website should accomplish four things clearly

  1. Describe who you are and the products you offer
  2. Attract potential customers to purchase
  3. Facilitate the purchase of your product or service
  4. You can easily contact customer service or sales to ask questions

Start by making sure your website is clean, current, up-to-date, and updated in terms of its information. Next, test your ecommerce components to ensure they work smoothly.

The free SEO Analyzer tool on will give you strategies that help get your website found on Google.

After you have set up your website, perform a search engine optimization audit (SEO). An SEO audit will allow you to better understand how Google and other search engines view your website. SEO-based modifications may be required to improve the visibility of your website when someone searches for what it provides.

Review your customer communication experience, in addition to SEO.

  • Are there any links to social media sites?
  • Do you have a section or a link where customers can leave reviews?
  • chatbot could benefit your site by answering common questions
  • Is your email and phone number easily reachable?

4. 4.

Customers can leave reviews on your free Google My Business listing.

Responding to customer reviews is a simple way to increase sales and conversions. Consumers say that businesses that respond to customer reviews are 1.7X more trustworthy than those who don’t (76% to 46%).

Pay attention to these reviews and respond to any negative comments. Some 45% consumers say that they are more likely to visit businesses that respond to negative reviews. You can also share positive reviews on your site and social media. Spread the word!

Encourage reviews by making it easy. Have you ever received a receipt promising to send you something free for filling in a review? You can increase your chances of getting customers to write reviews by sending them an email and a hyperlink.

5. Communicate with Customers

Customers expect to have a relationship with companies they patronize. Interactions can provide valuable insight for businesses about customers.

Communication is a two-way process. Don’t just ask for feedback. You can also offer advice or discounts in exchange for feedback. There are many ways to communicate with customers and establish a relationship. Here are some:

  • You can also go in-person and take a bit more time at the counter
  • Email – A thank you, feedback and coupons
  • By signing up for our newsletters
  • Social media:
  • Chat rooms for your website
  • Forums
  • Virtual Meet-ups offer an opportunity to meet interesting speakers

6. 6.

You might be reluctant to invest more money in your business at first. This is especially true when you are trying to figure how to make more money and not less. In times of chaos, where there are new opportunities, it is often the best decision to take a short-term risk for a long-term reward.

Get creative when looking for a large investment in your company. You don’t need to use your business or personal funds for this investment. Customers will benefit from this upgrade? Think about a crowdfunding campaign. Do you need better equipment? You might consider a equipment loan. Do you see it as a new idea? Consider getting an investor.

7. 7.

Freelance websites like help you connect with vetted freelancers.

Outsourcing tasks or hiring contractors is one way to reduce costs. This allows you to save on employee benefits such as FICA or health insurance. It also gives you more money for your bottom-line. An expert contractor may be able to do a job faster and better than adding it on to an employee with less qualifications.

Outsourcing and contractors are particularly useful for administrative tasks, short-term projects, and other unique tasks that do not require a full-time employee. You may find certain services such as HR or accounting included in a software and/or service package. You might consider a freelancer site if you are looking for contractors to do a particular task.

8. Advertise More

Advertising can be a costly investment. Perhaps you have been scammed by marketers who promised results but didn’t deliver. You might have tried advertising on your own, such as Facebook ads, but it didn’t work.

Advertising works, regardless of past experience. However, it is a long-term strategy. Experts believe that a customer must view an advertisement 20 times before taking action. A Facebook advertisement to 10,000 people will not be as effective than 10 ads to 1000 people.

You can make advertising more powerful by reading Influence by Robert Cialdini. This book provides strategies to convince people to act on your ads quickly.

9. Raise Prices

This strategy is both simple and unpopular in today’s economic climate. However, it is sometimes necessary to raise prices in order to remain in business. Consider these options when settling on a price:

  • What does it cost to make the product?
  • What it costs to deliver it
  • The business costs, including administration and wages,
  • Prices of competitors
  • Last time you increased prices

Consider the data and decide on a fair price increase. You can include any pricing data in your Business Plan if you wish to revisit it later.

Next, tell customers about the increase. Explain the reasons you made this decision. Customers should be informed that there are ways to increase the value of the product without reducing profits.

Keep in mind that increasing prices can result not in a decrease but an increase in sales according to Influence, the best-selling book on persuasion. This psychological effect is caused by people seeing your product or service more valuable because it costs more.

10. 10.

Selling to existing customers is easier and more cost-effective than selling to new ones. Offer additional products and add-ons to existing customers or leads.

via your email list is one of the best ways to accomplish this. Perhaps you aren’t interested in sending another email to customers. You may be thinking wrongly about customer emails if this is the case.

Customers should value their emails more than sales. What can you offer your customers to add value to their lives? Think of a tip, recommendation or piece of advice that is relevant to your industry. Next, add the sales language to the value.

You can also sell to existing customers. Send handwritten notes to your loyal customers. Include a coupon or a reminder that you value them as customers in the note. Include a call to action (CTA) at the end.

11. Reduce the price of a leader item

A leader item is a product that your customer buys. This could be a basic product, a subscription that offers no frills, or the first of a series.

You can attract new customers by offering the leader item at an unassailable price. Once they become a customer, it is possible to sell additional products, upsell (more of your current item), and cross-sell (a new item). No matter what strategy you use, the key is to offer a customer a great deal on the leader product.

12. Follow the 80/20 Rule

You should focus your efforts on your most valuable customers. It is believed that 20% of your customers bring in 80% of your revenue. These are the customers you should be focusing on.

The flip side is that 20% of your customers are often the source of 80% of your problems. To make your business more productive, identify and fire problem customers.

13. Reduce Costs

The Profit Leverage Effect (PLE) is one way to reduce costs. The Profit Leverage Effect (PLE) is the idea that every dollar you save on the production or delivery of goods adds to your bottom line, without having to sell more.

To cut costs, examine your current processes:

  • Is there an area where efficiency can be improved?
  • Do you want to negotiate for lower prices on products or services?
  • Are you looking to save money by using new software or hiring services?

Save money to make money.

14. Collaborate

Are there businesses that are similar to yours but have a different market or meet a different customer need? This may have been something you didn’t consider when you first started your business. But, it is worth considering a partnership or collaborative effort.

You can promote each other to customers by simply sending them a newsletter, or you could get involved in bundling products. Clear guidelines should be established when collaborating. These guidelines should include profit sharing, cost-sharing, and efforts.

Bottom line

It’s more important than ever to be innovative in order to be financially successful. To determine whether there are any expenses that you can reduce or eliminate, audit your business. Consider tapping into your email list and upselling to increase sales. Consider the paid options, such as advertising or business investments, after you have explored the free possibilities.

6 Best Agent Services

Services offered by registered agents (RAs) are generally similar. They accept legal and state documents for you. Pricing, customer service and other legal services plans are the only differences. Consider your company’s legal requirements and your overall budget when choosing the right registered agent service.

These are the six top registered agent services in 2020:

Register Agent Services Best for Cost
Northwest Registered Agent (Best Overall) Business owners who need a simple and reliable RA service $125 per annum
InFile A new business owner with a limited budget is looking for the best deal on registering agents $119 (First year free of charge with new business formation
Zen Business Pricing package for a custom registered agent or business formation $99 per annum (first year $49 for new business formation).
LegalZoom You can also find many other online legal services $299 per annum
Biz Council A registered agent service and ongoing legal advice With its $89 per-month plan, there is no cost
Rocket Lawyer Affordable legal services – registered agent, business formations, legal advice and legal docs $149.99/year (save 25% if you are a member).


Tip For more information about what a registered representative does for your company, please read our beginner guide to becoming a registered agent.


How we evaluated registered agent service companies

We reviewed the following:

  • How much does RA cost? Are there discounts for the first year?
  • Additional services: Is there an additional service that is included with the standard registered agent service
  • Customer reviews online: What was your experience?
  • Software quality: How will the signup process and ease-of-use be?
  • You can use a company to provide RA services. Can you also use them for legal services like business formation to launch your business or attorney advice?
  • Customer Service: How can I reach the companies?

Northwest Registered Agent: Best RA Service for Small Businesses

What makes Northwest unique is it specializes in registered agent (RA) services. This focus allows them to perfect the RA service with locally scanned documents and customer service reps (called Local Guides) that are experts in registered agent services. In addition to being your RA, they can also assist with business formation and maintaining your business with the state.

Northwest Registered Agent Pros Northwest Registered Agent Cons
Talk to a local guide for free Inadequacy of comprehensive legal services
Documents that have been locally scanned  
Customer privacy enhanced  
Highly rated customer service  

Contact Northwest Registered Agent

Northwest Agent Pricing

$125 per year

Northwest Registered Agent Features

  • Local Corporate Guides When you call Northwest, you will speak to a “Local Business Guide” who is knowledgeable in the specific state you are calling. This is a great benefit for RA services because they can help you navigate the process. A registered agent can go by many different names depending on the state they are in and have different business requirements.
  • Documents locally scanned: Northwest will scan the document and upload it from the location where it is received. It is possible for mail to be lost if it is sent to another company.
  • No sales of personal data:Some large online legal service providers will sell your personal information. Northwest has committed to never selling any customer’s data.
  • Customer Service: Monday through Friday, 8 a.m. – 5 p.m. Eastern Time by phone, email and chat.

Why we like Northwest Registered Agent

Northwest’s About Us page is one of the most customer-centric pages ever created. Their slogan is “We’re just not annoying.” They also believe that money should never be in the way of a good relationship. You don’t have any obligation to be happy with the service you receive. Northwest does not have any investors or debt and is the owner of their commercial real property. The business can be run by its owners without the need for outside supervision, unlike other legal services.

IncFile: The Best Deal for a New Company’s Registered Agent

What separates IncFile from other registered agent services is its initial low cost. The first year of RA services is free when you form a business (LLC or corporation). After the first year, it’s $119 a year. Included with the RA service is a digital dashboard that reminds you of important dates such as business registration renewal.

Pros at IncFile IncFile Agent Cons
Registration of a business is free for the first year No legal form maker
Register your business for free  
Online dashboard for RAs  
SMS Notifications

Visit IncFile

Pricing for IncFile Agents

$119 per year, but it’s free the first year you register your new business.

IncFile’s business registration (LLC/C-corp and S-corp) are free.

IncFile Agent Features

  • IncFile:IncFile is the leader in pricing. The first year of registration for registered agent services, when forming a company, comes with no cost.
  • Additional legal service: IncFile offers unique legal services including filings with the IRS and a search for trade names.
  • Online dashboard Log in to an online portal to view important information regarding your registered agent service, such as the renewal date and scanned documents.
  • SMS notifications When IncFile receives documents on your behalf, it will send a text message to you.
  • Customer Service: Monday through Friday, 9 a.m. – 6 p.m. Central Time by phone or email.

Why we like IncFile as a registered agent

IncFile is the best online pricing provider for legal services. The delivery of services is high-quality, despite the lower price. Third-party review sites rate IncFile at 4.8 out 5 stars. Customers were pleased with the customer service experience and the simple process of signing up for legal services.


ZenBusiness: The Most Flexible RA and Business Formation Programs

What separates ZenBusiness from competitors is the ability to combine RA services with a custom business formation package—create one that fits your needs. Also, similar to IncFile, it provides a first-year discount on RA services when you combine them with a business formation. ZenBusiness is highly rated online. With any negative reviews, it tries to resolve the customer’s complaint.

ZenBusiness Registered Agent Pros Zen Business Registered Agent Cons
Customer service at its best Recent increases in the length of customer responses have led to a longer response time
You don’t have to worry about compliance  
Unique additional legal services  
There are many plans available  

Visit ZenBusiness

ZenBusiness Agent Pricing

$99 per annum

Existing business owners can also choose from several plans. The lowest-cost business formation and registered agent plan costs $49 the first year, and $119 each year thereafter.

ZenBusiness Features

  • ZenBusiness offers worry-free compliance when you sign up to the $179 per annum business formation and registered agent plans. This deal guarantees compliance with state or it will fix it at no cost.
  • Exclusive service plans: All three ZenBusiness business formation and maintenance plans include an agent. Depending on your business requirements, choose the right plan.
  • Highly rated user reviews:4.7 stars from third-party review websites. ZenBusiness was easy to use for customers. Customers also liked the speed of response.
  • Customer Service: Monday through Friday, 9 a.m. – 7 p.m. Central Time by phone, chat, or email.

ZenBusiness: Why We Love It

ZenBusiness offers unique packages that include its registered agent program. ZenBusiness offers peace of mind for business owners who are concerned about keeping up with state documents. ZenBusiness is second, with a $49 initial fee ($119 thereafter) and the best business formation and RA deal IncFile has to offer.

LegalZoom: The Best Choice for Additional Legal Services

What separates Legal Zoom from the other registered agent service competitors is the additional features. Every RA service includes business data monitoring and up to $1 million in identity theft coverage through Experian. Additionally, LegalZoom provides a compliance calendar to keep you up to date with any RA-related deadlines in your state.

LegalZoom Registered Agent Pros LegalZoom Agent Cons
Business data monitoring High costs
$1 Million in Identity Theft Coverage  
Calendar for compliance  
A large selection of legal services available  

Visit LegalZoom

LegalZoom Agent Pricing

$299 per annum

LegalZoom Agent Features

  • A wide range of legal services are available: You can also get personalized legal docs and legal advice.
  • Identity theft coverage and data monitoring: All RA services include Experian data monitoring.
  • Compliance calendar LegalZoom offers a custom compliance calendar that alerts users to deadlines for tax returns and annual reports.
  • Customer Service: Monday through Friday, 7 a.m. – 5 p.m. Pacific Time, Saturday and Sunday, 7 a.m. – 4 p.m. Pacific Time, by phone, email or chat.

Why LegalZoom is a Registered Agent

LegalZoom’s high-quality and simple-to-use software is one reason it is more expensive. LegalZoom offers the best customer service, with weekends open–which can be important for side-businesses.

BizCounsel: The Best Registered Agent Deal with a Advice Plan

What separates BizCounsel from the other companies on this list is that its registered agent service is free. However, to get the free RA, you need to sign up for its $89 per month legal advice and document review plan. If you have a business that needs documents reviewed by an attorney frequently, or ongoing legal questions, BizCounsel has the best registered agent service deal.

BizCounsel Registered agent Pros BizCounsel Registered agent Cons
RA’s available for three businesses that have the Pro plan You must purchase the legal advice plan
Unlimited attorney consultations  
Drafting custom legal documents  
Online reviews highly rated  

Go to BizCounsel

BizCounsel registered agent pricing

$89 to $189 per Month (RA included in legal advice and document review plans)

BizCounsel Registered Agent Features

  • Multiple registered agent: If you own multiple businesses, you can have three registered agents under the BizCounsel Pro plan.
  • Customer Support Team:Members can book appointments or facilitate meetings with an attorney by contacting a client success specialist.
  • Responsive customer services: Negative online comments were followed up by a BizCounsel representative and the co-founder.
  • Customer Service: Monday through Friday, 8 a.m.-6 p.m. Pacific Time by phone or email.

BizCounsel is why we like it

BizCounsel was founded by LegalZoom’s founders over 20 years ago. They are familiar with the online legal services market. BizCounsel can help you with document drafting and legal questions.

Rocket Lawyer: The Most Affordable Combination Of Legal Services and Registered Agents

What separates Rocket Lawyer (RL) from the competition is the combination of lower-cost ongoing legal services such as customizable forms, legal advice, and a registered agent service. Rocket Lawyer’s pricing for a RA is slightly more expensive than most companies on this list. However, with the 25% member discount, the price is comparable.

Rocket Lawyer Registered Agent Pros Rocket Lawyer Registered Agent Cons
100% satisfaction guarantee RA services are slightly more costly
Online access to mailed documents  
Additional legal services at a low cost  

Visit Rocket Lawyer

Rocket Lawyer Pricing for Registered Agents

Save 25% on your $149.99 annual cost by joining the $39.99 monthly Membership

Rocket Lawyer Registered Agent Features

  • 100% satisfaction guaranteed: While other registered agent companies might offer a refund if they aren’t satisfied with their service, Rocket Lawyer is the only company that explicitly states it will refund.
  • Documents organized online All documents will be scanned, and uploaded online. When you receive a document, you will be notified promptly via email.
  • Premium membership. Rocket Lawyer offers a single, comprehensive membership that includes customizable legal documents, advice, and legal advice.
  • Customer Service: Monday through Friday, 6 a.m. to 6:30 p.m. Mountain Time via phone, chat, and email.

Rocket Lawyer is a Registered Agent: Why We Love It

Rocket Lawyer’s 100% satisfaction guarantee is very attractive. Rocket Lawyer offers a 100% satisfaction guarantee. If you don’t get a document within the time frame you requested, or you are unhappy with the RA services you received, you can request a refund. Rocket Lawyer offers a wide range of legal services that make it simple to handle multiple legal tasks, which can be crucial if you need to take several legal steps in order to start your own business.

Bottom line

Many registered agent services offer the same service: a safe place to drop off important documents or mail them. When choosing an RA company to represent your company, make sure you consider all legal services offered. If you are starting a business with a limited budget, consider the annual cost.

Register Agent: What is it and how to get one

A registered agent (RA), is the official contact for a business to receive important documents such as a summons, subpoena or renewal of registration. Although every state requires businesses to have a registered agent in order to receive important documents, regulations can differ. Several states allow a business to have its own registered agent, while others do not. It will cost you between $100 and $300 to hire a company as your registered agent.

What Does a Registered Agent Do?

There are two primary responsibilities that a registered agent must fulfill. The official contact for legal documents is one of the primary responsibilities of a registered agent. The summons must be delivered in person before the lawsuit can begin against your business. The state mandates that all businesses have a contact person available Monday through Friday, from 9 a.m. until 5 p.m.

You could face penalties if your Secretary of State’s Office is unable find someone at your address, such as losing business registration and a fine.

Another responsibility of the registered agent is to serve as your contact for state correspondence, such renewals of business registrations. Each state requires that LLCs and corporations renew their registrations each year and pay a fee. When it is time to renew, the state will contact you.

Imagine your mail is lost or stolen and you fail to renew your registration by the due date. If that happens, you could be fined or lose your legal entity status if the state waits too long.


Tip Registered agents are required for corporations and LLCs. An RA is not required if your business is sole proprietorship or if you have registered a DBA tied with a sole proprietor. You are the sole proprietor and the state is fully transparent.


Important to remember that a registered agent can go by different names depending on where they are doing business. You can also use the following names:

  • Statutory agent
  • Resident agent
  • Agent for the service of process

To find out the requirements of your registered agent, it is a good idea to consult your state’s official website for business registration. Virginia, for example, requires that the registered agent must be an attorney or a member the management of the business entity. It cannot also be the business or a family member.

Do You Need to Be Your Own Registered Agent

It might be worth considering becoming your own registered agent. This would help you save at least $100 per year. If you are allowed to register as an agent in your state, it is fairly easy.

  • Resident individual You must reside in the state where your entity is registered or incorporated.
  • Address in person: A physical address must be provided within the state where you are incorporated. A P.O. A P.O. Box is not considered an in-state address. Some states require that you designate a “Registered Office” along with a registered agent.
  • Normal business hours You, or someone within your company, must be available to receive mail and other documents for you during “normal” hours of 9 a.m. to 5:30 p.m. on Monday through Friday.

Even if you have the qualifications required to become your own registered agent, there are still some downsides to being your own registered representative.

  • Get junk mail:Many businesses send promotional offers to your public-facing Registered Agent address. This mail may not be addressed to you if you work at home.
  • You may not wish to serve legal documents at work: Customers or employees might be served with legal notices.
  • Complex if you do business across multiple states. When doing business across several states, it can be complicated to manage forms and submits for each Secretary of State.
  • You must be at the office during business hours.
  • You may miss correspondence: A business renewal notice or tax notification can be missed and could lead to a fine.

You may want to consider hiring a company as your registered agent. This is known as a registered agent service.

What does a registered agent service do?

A registered agent service is an organization that acts as your contact with Secretary of State. They will accept your tax, legal and notification-related mails and send it electronically to you. Your junk mail will be thrown away by the RA service. A registered agent service typically costs between $99 and $350 per annum.

A service of an agent may offer the following benefits:

  • A physical office: Certain legal documents must be delivered to a physical location and cannot be sent to P.O. Box.
  • Mail forwarding Registered agents can make sure that important mail gets delivered, even if you move.
  • Privacy protection: Registered agent ensures that your personal information (such as your address) is kept private and minimizes the chance of embarrassing situations such as being served with a summons in front of clients or neighbours.
  • Compliance monitoring – Registered agents assist you in ensuring that documents are filed within the legal deadlines.
  • Document organization A registered agent is also available to help you keep track and stay organized.



Free ebook: How to Start Your Business. Step-by-step guide that will show you how to go form idea to launch your business in just 30 days 


The pros and cons of hiring a registered agent

The benefits of a Registered Agent Service

There are many benefits to hiring a registered agent.

  • Reliable:Hiring third-party registered agents service ensures that your business receives all necessary documents promptly.
  • Private:RA is a great choice if you work remotely or have other reasons to keep your information private. A registered agent can be used to serve legal process documents. This will help avoid embarrassing interactions such as being served with a summons in front potential clients.
  • Flexible:Registered agent services can be used to allow you to run a business in any state that does not require a physical address. This flexibility is beneficial for businesses that operate primarily online, or those that move around like a food truck.

Cons of Agent Services

There are some cons to hiring a registered agent.

  • More expensive: Hiring a registered agent is more expensive than either doing it yourself or having someone you know serve as your agent.
  • Additional paperwork required: To use a statutory agent service, you must sign up and pay.

Where can I find a registered agent service?

Numerous companies are available to serve as your registered agents. Fees are an important consideration when choosing an RA. There may be companies that offer low or free fees. Before you sign up for a low-cost RA service, find out if there are any fees such as document forwarding and second-year renewal.

These are some of the recommended registered agent companies we recommend that are reliable and affordable:

Northwest Registered Agent

Northwest Registered Agent mainly offers RA-based service. It is a specialist in ensuring that your business information remains private and secure. They can submit simple documents or put their address on a paper form on your behalf. Northwest charges $125 per annum for its registered agent services.


IncFile offers the best deal if you want to register your company as a legal entity and also get an RA service. This service offers a free LLC or corporation registration and a first year of free registered agent services. IncFile’s RA service is $119/year after your first year.


Rocket Lawyer is unique because it offers ongoing legal services as a monthly membership. Rocket Lawyer is a great choice if you have many legal steps to follow, including customizing legal documents and answering specific questions. Rocket Lawyer charges $149 per annum for a registered agent. You can save 25% on your RA by signing up for the $39.99 per month legal service.

FAQs about registering agents

Who can be a registered agent?

While requirements for registered agents vary from one state to the next, they must be at least 18 years old and have a physical address within the LLC filing state. Your RA must be at the address during normal business hours. You can either hire a registered agent or find a friend or relative who meets these requirements.

Are You a Registered Agent?

You might be tempted to take on the role of registered agent if you are just starting your business. Be sure to make sure you and someone from your company are available during business hours before you do this. Except for certain states, your LLC may not be named as its own registered agent.

Can an LLC’s Organizer be its Registered Agent?

If the LLC’s organizer has a physical address in the state, the RA can accept mail at the address during business hours. To prevent mail being lost, inconsistent hours of business, and other problems that could lead to a failed delivery, we recommend using a registered agent.

Is a UPS Store a registered agent?

An UPS store cannot be registered as an agent. A registered agent must have a physical address within the state in which your business is located.

A person must also be available during normal business hours to receive mail. These requirements are why a P.O. A registered agent is not allowed to register a box or rented box at UPS.

Bottom line

If you are confident that your mail will not be lost, and you are available during business hours, you may be able to serve as your own registered agents. A registered agent service is a good option if you travel frequently, don’t need junk mail, or do business in multiple states. An annual fee of $100-300 for RA services will give you peace of mind, and help you keep track of important state and legal matters.

State Tax ID: What it is and how to get one

The state gives a tax ID to a company to file state taxes. These IDs are required by states for all businesses that are registered as legal entities (LLC or corporations) or have employees. Visit your state’s official tax website to obtain a tax ID number.

How the State Tax ID Works

Any business filing taxes or hiring employees needs a state tax ID. A state tax ID allows a company to hire workers in that state and withhold some wages from payroll taxes. A state tax registration also allows you to identify your business for unemployment and other state taxes.

If the company plans to hire workers from another state, it will need to apply for a tax ID in that state.

The state tax ID allows business owners to apply for a sales tax license or resale certificate. These documents allow you to buy inventory wholesale at low prices and not pay a sales tax. Customers can also be charged sales tax. Depending on where you live, this certification and license may be required to apply through the Department of Revenue.

The name of your state’s tax ID varies depending upon where you live. You can refer to it by:

  • State EIN
  • State employer ID
  • Number of state tax registration

Remember that the type and type of tax registration you require may vary depending on the business you run and the taxes you pay. A company that sells alcohol or fireworks might need a different registration process.


Tip A sole proprietor may not require a state tax ID number. Your SSN can be used to file both your federal and state business income. Many small business owners want an EIN to protect themselves from identity theft.


State Tax Identification Number vs EIN vs TIN

Many new business owners are confused about the state tax ID number, employer ID number (EIN), and taxpayer identification number(TIN).

The IRS assigns the EIN a nine-digit number. This number is necessary to

  • Register the business as an entity (non-sole proprietorship).
  • File federal income taxes
  • Opening a bank account for your business
  • Apply for a business license

The EIN is a legal requirement for starting a business. Every LLC and corporation will require an EIN. Visit the IRS website for a free EIN number. An online legal services can help you get it.

Tax identification number (TIN), a general term, refers to all tax identification numbers that are used to file taxes. It is not specific for businesses. This term covers the individual SSN, the federal or state EINs for businesses and the individual TIN (ITIN), for foreign citizens who pay taxes in the US.

Are You a Tax ID holder in the State?

There are many factors that will determine whether you need a state tax ID. A state tax ID may not be required if you are a sole proprietor with no employees.

If you intend to hire employees or sell products or services to your business, however, the state tax ID number will be required. If you are:

  • Sell products or services: Regardless of whether you intend to hire employees, you will need a state tax ID if your business sells products and services that are subjected to state taxes. You may not require a state tax ID in order to pay income taxes, but you will need one to pay state use and sales taxes.
  • Hire employees: Employers must have a state tax ID in order to withhold income taxes from employees and to pay unemployment. A state tax ID is required for employees who plan to work in multiple states.
  • You are a sole proprietor. Single proprietors have the option to use their Social Security number for tax identification. Many business owners don’t want to use their SSN because they fear identity theft. These risks can be mitigated by using a state tax ID.

State tax ID costs

Most states do not charge businesses for a state tax ID. Some states might charge up to $100. The requirements for state IDs and the application process vary greatly. To determine the cost and procedure for obtaining a state tax identification, we recommend that you visit your state’s Department of Revenue.


FREE Guide: How to Start Your Business Step-by-step guide that will show you how to get from idea to launch in just 30 days 

How to get a state tax ID number

Although the process of getting a tax ID number for a state is fairly straightforward, it can vary from one state to another. The ID application process can vary depending on what type of business you own and what taxes you need.

  1. To start a business, you must first obtain a federal EIN through the IRS Website.
  2. Next, go to the website of your state’s Department of Revenue. The DOR’s website usually contains state tax information. It may be different for each state. Your state’s Secretary-of-State’s website can help you find the right way if you get lost in your search.
  3. Follow the steps to get a state tax ID once you have found the right department website.

No matter which state department handles tax IDs for the state, all states offer an easy online application process. You will need your EIN number and basic details about your business to complete the application.

Providers of State Tax ID

Consider using an online law service if you find the above process confusing or difficult to navigate.

LegalZoom can assist you in obtaining your State Tax ID for a small fee. It has experts who can navigate complicated websites of local governments to help you get your state tax ID. LegalZoom can also help you with any legal issues that could be confusing, such as the state sales permit and business registration.

FAQs for the State Tax ID

What state tax ID number do I need for my business?

A state tax ID number is not required for every business to be able to operate. If you plan to register your business as an LLC or corporation, you will need one. If you intend to hire employees, you will need a state tax ID (or in some states a withholding account ID) to properly withhold income taxes.

Is the EIN equivalent to the state tax ID?

An EIN (employer identification numbers) is a federal tax ID that uniquely identifies businesses. This number can be used to file taxes and open a bank account for a business. This number is required to open a business bank account, file taxes and hire employees.

A state tax ID, on the other hand is a unique number that a state issues to a company. A state tax ID allows a business owner to withhold employee’s state income taxes. Before you can apply to a state tax ID, you must have a federal EIN.

How can I find my state tax ID?

For the first time you will need a state tax ID. Contact your Secretary of State to find out which state agency issued the number. To request a new tax ID for your state, go to the department’s website.

To retrieve a state tax ID number that you have been assigned, contact the appropriate regulatory agency in your state –the Department of Revenue or Office of Taxation.

How can I locate my state tax ID so that I can sell online?

You will still require a state tax ID if you sell goods or services online. This allows you to pay sales taxes and purchase materials or inventory wholesale.

Let’s say you want to sell jewelry on Etsy. To create and sell your jewelry, you will need to purchase tools, raw materials and shipping materials. These transactions won’t attract sales tax. You’ll be charged sales tax when you sell an item. You can purchase materials wholesale and then pay taxes at the sale of an item by obtaining a state tax ID number.

Bottom line

To comply with state tax requirements, you will need a state tax ID if you own a LLC or corporation or have employees. This number can be obtained from the Department of Revenue website. The responsibilities of government offices vary depending on where they are located. For a fee, you can hire an expert from an online legal service like LegalZoom if the state process is confusing.

12 Tips for Small Business Cybersecurity

Small business owners often don’t think about cybersecurity. It should be. 43% cyber-attacks on small businesses are targeted–since COVID-19 cyber-attacks have increased 300%. For very small businesses, protecting your business is often straightforward–avoid phishing scams and change passwords frequently. As your business grows, cybersecurity becomes more complex and important.

This glossary will help you to understand the terminology used in cybersecurity.

1. 1.Train Your Employees

The most important takeaway from this list is that 95% cyber-attacks are human-caused. An employee clicking a link in suspicious emails or an employee causing data damage can be attributed to human error.

It is important to make sure you and your employees are aware about potential threats. Then, be prepared for what to do in the event of a computer hack or other infection.

These are the key points to remember when creating a training program.


The Key Points

  • What is a secure password?
  • How can you avoid phishing or social engineering attacks?
  • How can I surf online securely?
  • How do you identify suspicious links?
  • Contact information for those who suspect or are affected by a cyberattack.
  • How can you secure your home network, especially for remote workers?
  • What and when should you use approved cybersecurity programs such as password managers and antivirus?


Training should be continuous. There are always new threats and schemes. A monthly bulletin should be prepared about the latest threats. To check their preparedness, some businesses send out fake attacks such as an email phishing scam.

Training employees about email phishing scams

Phishing scams are the most prevalent cybersecurity threat to small businesses. These emails are designed to steal usernames and passwords as well as sensitive information like a credit card number.

This is the main reason small businesses face cybersecurity problems. Employees are often victims of scams and give out private information via email. These scams are increasing due to remote work.

One of the greatest threats currently is for hackers to imitate a boss’s emails and ask employees to buy gift cards or transfer money for an event.

You should train your employees to be suspicious about emails that ask them to send money or confidential information.

These are some common ways to spot phishing scams:

  • Incorrect domain names or unfamiliar in the email address
  • Emails that contain links that are unusual, long, or strange will not be opened. If you’re given a link for Amazon, hover over it and it should begin with “” not a variation.


Tip Verify the sender if you suspect that an email has been sent. To see the complete email address, hover the cursor over the name of the sender. Never respond to suspicious emails! Replying to suspicious emails alerts hackers to your active address.


2. 2. Protect your Passwords

Passwords can be compared to keys. You need to secure them. It’s much easier to get a duplicate of passwords than keys. Your employees and you must ensure that your password security is up to par so that anyone who gets your password can’t affect your business in any way.

First, don’t use the same password repeatedly. Create a unique password for each account.

Secure communication should be:

  • At least 10 characters
  • Add a number
  • Both lowercase and capital letters are acceptable
  • Special symbol (! @#$%)
  • Do not include any personal information, such as birthdays or dog names.

These are the guidelines that you should be directing your employees to follow. Everybody should change their passwords, or at least the most important ones, every three months. This is something we’re all familiar with, but it’s important to make sure that the password you use has a different number at its end.

This process of managing passwords can be time-consuming. Password managers are trusted programs. RoboForm Business can remind employees to change passwords according to a set schedule.

You can also ask your IT manager to send reminders on a regular basis. Consider making password resets a regular task if you use project management software.

3. Antivirus Software Available

Antivirus software scans the internet and data to protect your computer from malware. It detects suspicious behavior and blocks malware. It could also alert you about other, less-important threats.

Remember to be aware of known malware and threats. You must keep your antivirus software up-to-date with the most recent information.

Although most operating systems have decent antivirus software, businesses should still purchase an additional program. It is better to purchase it than rely on freeware (a version that comes with every operating system).

Additional features such as firewalls, web security, password managers, VPNs are available to purchase programs. Antivirus software costs anywhere from $10 to $100 per year.

4. You must ensure that your website is HTTPS

HTTPS websites offer additional security by using encryption. This is important to protect your website from cyberattacks. Google also penalizes websites without this additional security.

Example of a warning for a website without an SSL certificate

You can use your SSL certificate if you have it already. This can be done by many web hosts for free or for a small charge.

If you are creating a new website for your business, the SSL certificate is likely already installed. This update is required for older websites.

5. Backup all data

While it won’t prevent a cyber-attack, backing up data will help you recover faster. It is important to have a backup system for all your business data. Many programs make it easy to do this automatically so that you and your employees don’t have to make copies.

An external hard drive, or server, can be used to backup and store data on-site. You can schedule backups to an external location with security programs such as Norton.

You can also choose to backup to the cloud. This cloud-based backup is more reliable than “cloud-based solutions” such as Office 365. It stores files in the cloud. Cloud-backups copy all data on a computer, unless you tell them what files to save.

Cloud-based backup solutions such as Carbonite work in the background, and employees are not aware of them. This protects your server from attacks and also prevents physical damage. Most cloud-servers store data in other locations. Cloud-based solutions should include both cybersecurity and licensing. This includes encryption, TLS protocols, and physical security.


Tip Employees should not set up cloud storage services for their work. These create security vulnerabilities that you cannot control. The company-approved cloud service should be used by employees. Cloud storage can be as low as $1 per gigabyte. If you’re attacked and need to rebuild information, cloud storage is invaluable.


6. Keep your website and software up-to-date

Sometimes people are unable to update software because they feel comfortable with the older version’s interface. Software companies, not just antivirus software providers, update their software to fix security holes they find in their programs.

It is important to keep your technology current, especially if you own a WordPress site. Hackers are known to infiltrate sites using outdated WordPress themes or plugins. You should log in at least once every three months to check for any updates if you manage your site.

7. Make a small business cybersecurity plan

Your business should have a plan for cybersecurity. The plan should outline what to do in case of a hack or threat to the business. It should address how to protect your servers and computers as well as how to deal with stolen vendor, employee and customer sensitive information.

It is important to have a plan, a team, and regular reviews to ensure that everyone can follow through if something does happen.

It’s important to keep the checklists and plan printed, as computer attacks can be very sophisticated.

In your cybersecurity plan, include the following:

  • A team: At the minimum, you should have a leader, legal counsel and someone in IT. You also need a point-of-contact to get in touch with any other parties. Multiple roles can be played by one person.
  • Other sources: These are people you can contact for outside assistance such as computer forensics specialists to repair the damage, marketers professionals to issue statements and your broker for cyber-insurance for loss claims.
  • Who is potentially affected by your data breach? Think about your employees, customers, and vendors. Also, consider what privacy information you have for each.
  • List other sensitive information: Are you a holder of confidential documents that could be compromised by hackers?
  • List and deadlines of legal obligations: Who and when should you contact?
  • Make checklists for specific breaches
    • Date and time of the breach
    • Who should be contacted
    • A physical or virtual perimeter is created around the affected systems
    • If necessary, take the affected system offline
    • Interviewing people with critical information about the breach
    • Make a copy of the affected system to fix it without damaging the assessment
    • Take immediate actions to reduce damage and establish future protections
    • Notifying federal, state, and local government agencies about the breach
  • Recovery metrics These are your milestones and goals, which you use to report to your board of directors or customers as required.


Tip Make sure that your small business cybersecurity plan includes steps to restore systems and preserve evidence for further investigation. It is crucial to keep daily backups of your data.


8. Secure Wi-Fi

Secure Wi-Fi helps protect against online threats. It encrypts and password-protects your internet connection. You must ensure that your public Wi-Fi is secure. You will typically need to purchase an additional Wi-Fi feature modem from your internet provider in order to achieve this level of security.

Secure Wi-Fi can also alert you if you attempt to navigate to dangerous websites. It prevents malicious traffic and unwanted remote access from any device, including smartphones. This is an addition to antivirus software and not a replacement.

Public Wi-Fi

It’s easy to use smartphones and tablets to work, but employees should be discouraged from using public Wi-Fi.

Hackers can hack into computers using public Wi-Fi that is not secured. You should not trust public Wi-Fi that is secure. It is impossible to know what level of security the Wi-Fi provider provides or what it is recording.

9. 9. Get a VPN Service

VPN (virtual private networks) are a method to protect an internet connection over a public connection.

You should consider a VPN for employees who work remotely and have sensitive data. It provides a secure tunnel between the remote server and the home user. VPNs mask your employee’s IP address, making it more difficult for hackers to access private information.

Avoid free VPN services that may offer you anonymity. These VPNs often make money by selling your data on to third parties.

10. Protect all devices

Secure all company tablets and smartphones. If possible, provide employees with business devices. This separation of business and personal keeps confidential business data off employees’ personal devices.

Employees should not store business information on any devices they share with their family, friends, and/or housemates if this is impossible. Employees should also ensure that their devices are secured with a password or pin number. Encourage employees to use the same level security on personal devices that they do at work.

  • Keep your programs current
  • When possible, use encryption
  • Backup data
  • Antivirus software is a must

11. Cyber Liability Insurance

Cyber liability insurance protects businesses against losses and damage due to cyberattacks or data breaches.

Cyber insurance is an option if:

  • Take advantage of credit card payments
  • Keep confidential information that is important to your company safe
  • High risk due to at-home workers

Prices will vary depending on the level of risk and coverage chosen. For small businesses with moderate risk, the annual cost is typically between $1,000 and $2,500.

Cyber liability insurance covers can be of two types:

  1. First-party coverage covers costs incurred by your company such as customer notification, forensic service to repair the damage or lost income due to halting operations while you solve the problem. This may be covered by your business insurance.
  2. Your customers may suffer losses through third-party liability. These expenses include attorney fees and settlements against you company, government fines and defense before regulatory board.

12. 12.

Cybersecurity can be complex. A managed security provider can handle your cybersecurity if you are a medium-sized company. It can help with:

  • Installing firewalls
  • Antivirus protection
  • Training employees
  • Managing mobile devices
  • Multi-factor authentication
  • Backup and Recovery
  • Assessment of network vulnerabilities

You can hire a consultant firm to examine your security system and find any weaknesses if security is a concern.

Do your research and find a company that is well-known in your country before you hire a cybersecurity provider. It will vary depending on what services you need, but it may be less expensive than a full-time IT professional.

Other Small Business Cybersecurity Tips

  • Limit access to equipment : Particularly computers that contain sensitive information. You might consider a check-out and check-in process to equipment.
  • Set permissions: Limit employees’ access to program or information.
  • Turn off computers Every day: Make sure employees turn off their computers or lock them before they leave for lunch or the next day.
  • Ask employees at-home to change their Wi-Fi passwords. Employees who use their personal Wi Fi to log on to work computers from home will need to be able to access it securely.
  • Unique usernames should be used for each account. Although it may take more effort to create unique usernames for each account, you would not want the same username for multiple accounts if any were to be compromised.
  • When possible, use 2-factor authorization This is when a second step to a login is added after the first one–a text message, phone call or email–to verify the user’s identity.

Glossary of Cybersecurity Terminology

  • Unwanted Advertising:Unwanted advertisements that appears repeatedly on a screen. It is often hard to remove.
  • Botnet Attack:Malicious software allows hackers to access your network without you knowing, such as sending spam.
  • Breach When a hacker exploits a security flaw in a computer, device or network and gains access to its files and network.
  • Browser Hijacker is Malware which modifies the settings of a web browser without user permission. It can insert unwanted advertising in the browser, replace homepages and search pages with the hijacker’s page.
  • DDoS –Distributed Deny of Service Attack – Flooding a website or server with malicious traffic to render it inaccessible.
  • Firewall isHardware that prevents unwanted programs from invading computers or networks.
  • IP: A unique internet number that is specific to your location, similar to a home address but for your computer.
  • Keyloggers Surveillance: Surveillance records keystrokes in order to find passwords and sensitive information.
  • Malware Software that aims to harm users or the software they are running.
  • Phishing is A technique to obtain sensitive information. Commonly, an email pretending to be someone else and asking for financial details.
  • Ransomware These programs lock victims out of their computers and often demand money to unlock them.
  • Spam – Another name to refer to unsolicited emails
  • Spyware is Software that allows a user to steal sensitive information from a computer’s hard drive.
  • Trojan Horse This program can look legitimate, but it can overtake your computer and disrupt, steal or damage your data.
  • Viruses A piece of code that copies itself and corrupts data, programs, or systems.
  • VPN: This tool masks your IP address and encrypts all your data to keep you anonymous online.
  • Worms A program which spreads to other computers and causes damage to yours.

Bottom line

Cybersecurity can be easy to forget. It is rarely a problem until it is too late. Cyber-attacks cost an average $57,000. Small businesses cannot afford this, especially now. To protect your networks and information, it’s worthwhile to invest in antivirus and password managers. Make sure your employees are trained in the most popular schemes and kept up-to-date on current threats.

Three Reasons CBD will Overtake THC in Legal Cannabis Market

The legalized marijuana industry is growing at a rapid pace, with a projected $13.6 billion increase in revenue. It’s expected to reach $85 billion in revenues by 2030. Not all cannabis products are created equal.

There are two main types of cannabis-derived products.

  1. THC-based: Made with tetrahydrocannabinol, the primary psychoactive component of cannabis. THC is more tightly controlled and gives users a high. Marijuana, a high-THC strain of cannabis, is legal.
  2. CBD-based Made with cannabis, which is mostly medicinal and not psychoactive. CBD is more popular because it doesn’t give you a high. Although CBD can be extracted from cannabis, the majority of CBD products are made from hemp (cannabis plants containing less that 0.3% THC).


  • THC-based products are legal in California since 1996.
  • CBD-based products really started to take off after the 2018 Farm Bill significantly expanded legalized hemp uses.
  • US CBD sales are expected to exceed $1.9 billion by 2024.


In the next five-years, will CBD sales surpass those of high-THC products? Here are three reasons we think so.


1. CBD is easier to regulate than THC

Because CBD isn’t psychotropic, CBD products are much easier to legalize. It’s much easier to sell a product once it has been approved by a regulatory agency, such as the U.S. Department of Agriculture and the Food & Drug Administration.



Epidiolex, the only CBD product that has been approved by FDA as of today’s writing, is currently available in all but 11 states. CBD is currently allowed in food Another 16 states allow it, but with some restrictions. The market is so wild, as shown in the map below of US cannabis legalization, that many companies hesitate to promote and expand their products for fear of being caught in a state’s regulations.


But an amendment to the Federal Food, Drug, and Cosmetic Act proposed at the beginning of 2020 would define CBD as a dietary supplement, paving the way to allowing it in food products. Movement on the amendment is currently stalled because of the pandemic, but if it eventually passes it could reshape the marketplace.

2. Growing CBD Niches: Edibles and Skin Care. Pet Products.

While many people are familiar with the benefits of inhaling marijuana, there is growing consumer interest in CBD-infused edibles and skin care products. These products can all be made with CBD or THC, but the relaxed regulations make them easy to stock in supermarkets or other major outlets.


  • A 2019 Ipsos poll showed that more than half of respondents indicated they would likely consume CBD in their food.
  • Analysts believe that the CBD edibles market could reach $22 billion by 2022. Gummies, in particular , will sell $6.94 Billion globally by 2025.
  • Global CBD skin care market is expected to reach $959 Million by 2024. This will surpass its 2018 value of 35%.
  • The market growth for CBD products for pets could surpass $1.7B by 2025. This may not surprise considering 74% CBD buyers own pets.


Cannabis edibles all around Profit margins are much higher They are more popular than products that can be smoked. Hemp-derived products sell better than marijuana-derived ones. They promote wellness and not high. The chart below shows that the sales of CBD products derived from hemp will almost double those of marijuana-derived CBD products by 2022.



3. CBD has the edge because of cultural and marketing differences

Cannabis has a cultural baggage. Until recently, it was considered anti-cultural and associated with illegality, even though decriminalization is now common. Hemp-derived CBD products, however, are a completely different story. Although they lack the THC required to create a high, their advantage lies in their legitimacy on the mass market.

The chart below shows that CBD is more popular than THC for its health benefits, with more people citing control over inflammation, seizures and anxiety as the main reason they switched to CBD.

And a look at the demographics of CBD vs THC users reveals perhaps one of the most vital reasons for the projected ascendance of the former: the female consumer.


  • CBD is preferred by more women (55%) than it is by men (49%).
  • Women account for 85% all consumer purchases and a staggering 93% of all over-the-counter medication purchase .
  • It is believed that up to 75% CBD brands have female founders and general managers.


Research shows that CBD companies can increase their appeal to women if they continue to market to them.


Blended CBD/THC Products: The Entourage Effect

Terpenoids, or terpenes, are substances that can be extracted from cannabis. Some researchers believe that THC’s psychoactive effects can be tempered by terpenoids. They also believe that terpenoids may have an “entourage” effect on THC, CBD and terpenes. This is because the hybrid compounds are more effective, but produce less severe side effects than the “pure” ones.

These cannabis blends could be the “wildcard” to change everything. They combine the best of CBD and THC with a variety terpenes.

The validity of the entourage effect at the moment is still being debated. The curious can still purchase “sampler packets” from companies such as Care by Design Hemp, which contain products with different ratios.

The bottom line

Legal cannabis-derived products will be legal for the foreseeable future. What will be the dominant product on the market? THC or the much more domesticated CBD. Sometimes, a popular hit is from a sexy source.

What is DJ Insurance? And How Much Does it Cost?

Insurance for disc jockeys (DJs) is not a policy. This term covers all policies that protect DJs from business losses due to expensive equipment, interactions with guests and hosts, as well as any other potential loss. DJ liability insurance can cost between $180 and $450 per month, depending on the carrier.

Simply business makes it easy to get DJ insurance. You get primary coverages such as general liability, professional liability, errors and omissions. It will help you locate affordable, tailor-made insurance options through top insurance providers such as Markel, CNA and Hiscox. You can get started online in just minutes.

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How DJ Insurance Works

DJ insurance refers to the various policies DJs, VJs, and KJs need to protect their business risks. Because of the nature of DJs, VJs, or KJs’ work, as well as their frequent travels to different events, it is not surprising that they need insurance. business owner’s policy (BOP) is a must for most DJs. BOPs combine general liability insurance with commercial property insurance to cover DJs for their most common issues: lawsuits against third parties and damage to their equipment.

The DJ insurance policies are basically a mix of policies that can cause DJs to lose their money. DJs can’t make money if they don’t have access to their equipment so they need coverage for commercial property. General liability insurance is also essential, as DJs are susceptible to being sued by partygoers and venue owners.

Because DJs travel between venues, they are also at risk. This may mean that DJs need to have commercial auto insurance, as well as inland marine insurance for their equipment while it is in transit.


Tip: DJs should have liability insurance, regardless of whether they are booked regularly or only for a handful of jobs per year. They can protect their assets by covering medical bills and legal fees if they are held responsible for property damage or physical injury.


DJ Insurance Prices

No two DJs are exactly the same. Neither are all DJ liability policies. The type of events you perform at, the number of bookings you make each year and your income will all impact how much you pay for DJ liability insurance. For DJ liability insurance, a DJ who performs primarily at private events will pay about $260 per year.

Many insurers provide coverage for much shorter periods of time. For DJs who book private events, a three-day policy can be as low as $60. These policies can be offered as special-event coverage .

DJ Insurance Costs and Deductibles by Policy Term

Insurance policy Annual Premium Deductible
General Liability

$1 Million Occurrence/$2 million Aggregate

From $180 to $450 From $0 to $1,000
Commercial Property

Limit $5,000

$150 to $200 From $500 to $1,000

$1 Million Occurrence/$2 million Aggregate

Limit $5,000

From $600 to $1000 From $500 to $1,000
Commercial Auto From $3,800 to $4.200 N/A

This chart shows the average cost of DJ liability insurance and property coverage separately compared to a BOP. A BOP that includes liability and property coverages usually has a lower overall cost. Comparing policy terms between different brokers and insurance providers can help you get a better idea of the cost of insurance.

A DJ liability policy that covers both hired and unowned autos is a good idea if you rent trucks all the time, even though it may be more expensive.

These premiums are an average and may rise for DJs who:

  • You need property coverage to protect their equipment while in transit or at the venue
  • You may need higher limits
  • Include light shows, fireworks or other performers into your acts
  • Book gigs at nightclubs
  • Shows that go past 2 a.m.
  • You can play to larger groups


Tip: The type of equipment you use will affect the liability limits you set. This is something you should discuss with your agent when discussing liability limits.


Types of DJ insurance

A BOP is one popular DJ insurance policy. A BOP is a DJ insurance policy that combines general liability and commercial property coverage in a cost-effective package. Mobile DJs need inland marine coverage to protect their venues.

The Most Common Types Of DJ Insurance

Types of insurance It covers
General Liability Insurance Third-party claims for bodily injury, property loss, and advertising injuries
Commercial Property Insurance When business property is stolen, lost, or damaged, it can be worth its value
Inland Marine Insurance Business property lost, stolen or damaged during transit may have a value of $500,000
Commercial Auto Insurance The policyholder’s liability for accidents and the value of the vehicle as a business vehicle if it is stolen or damaged.

These are the most popular policies DJs buy. However, there may be other risks that DJs need to have additional coverage. In most states, workers’ compensation insurance is required for DJs who have employees.

Most DJs qualify for a BOP. BOPs often combine general liability insurance and commercial property insurance. Insurance providers will often offer DJs additional coverage at a lower rate, such as commercial auto or inland marine.

DJ General Liability Insurance

DJ general insurance protects you from interactions with other people, including clients, venue owners, party guests, or audience members. General liability covers you if one of these people accuses of causing their injury, or property damage. General liability insurance also covers defamation and copyright infringement lawsuits.

Imagine, for instance, that your sound system blows up and a spectator gets hurt while trying to figure out how to get home. If they sue, DJ liability insurance usually pays for their medical bills and legal fees. You can also get it if the artist claims that you have used their music without their permission.

A fundamental insurance policy is general liability. General liability insurance is essential for anyone who owns a business, even DJs who book only a few gigs per year. For DJs who upload remixes or samples online, copyright infringement coverage might be attractive. Some DJ insurance policies may not cover copyright infringement. Make sure to check your policy.


Tip: Part time DJs who only do two or three weddings per calendar year are exempt from the need for annual DJ liability insurance. They can instead get event insurance to meet their coverage needs.


DJ Commercial Property Insurance

Your business’s commercial property insurance will cover the workspaces you own as well as any items inside them. Commercial property insurance covers your items if they are stolen or damaged. This is less your deductible.

Commercial property insurance is important for DJs, video DJs (VJs), or karaoke DJs. It helps them return to work quicker. If they are working out of another building than their own, DJs might also need property insurance.

If they are:

  • Hire equipment: Rental equipment is usually excluded from commercial property coverage; DJ liability insurance often covers damage to rented or borrowed equipment.
  • Renting business space: Commercial landlords have to take care of their property. However, most landlords will require tenants to have general liability coverage.
  • Work from their home: While a standalone commercial property policy might not be enough coverage for a home-based DJ, you still need business insurance. Other options include a BOP or a business rider to your home insurance policy, or an in home business policy.


Tip: Your homeowners policy will not cover your business if it is located outside of your home. It won’t typically cover business activities. To cover your DJ equipment, you can either add a business rider to your home insurance or get a BOP. You have two options if neither of these work: you can get separate commercial property and general liability insurance.


provides more information about home-based businesses policies.

DJ Inland Marine Insurance

Inland Marine Insurance is a type insurance that protects your equipment while it’s being moved. Your belongings are only covered by commercial property insurance if they’re located in a particular location. Inland Marine covers your property if it is damaged or destroyed during transit.

Inland marine insurance is required for DJs who transport expensive equipment to other venues. It might be necessary if you borrow equipment from another DJ. You can become a bailee if you borrow a DJ’s karaoke equipment. As long as the machine is in your possession, you are responsible for it.

If they are contracted with venues with their own equipment, DJs do not need inland marine. If they rent trucks, they may not require coverage. Most truck rental companies offer coverage to protect their property.

DJ Commercial Auto Insurance

Your DJ business’s cars, trucks, and vans are covered by commercial auto insurance. Most states require that you have liability coverage in order to be able to pay for damages if you are involved in an accident. You can, however, add additional coverage to your personal auto insurance if you are willing to pay more.

Some examples of commercial coverage include:

  • Insurance: Covers you and your passengers for injuries
  • Collision: Insures your car against damage
  • Uninsured or underinsured motorist. Covers damages caused by another driver but not paying.

DJs with cars registered to their business are required to have commercial insurance. However, those who drive their cars for work might also need it. Personal auto insurance does not cover business driving. Therefore, accidents between gigs might not be covered. DJs who rent trucks or vans can opt out of commercial auto insurance.

Insurance for DJ Equipment Failure

Equipment breakdown insurance can provide funds to help protect your company’s electronic equipment against sudden malfunctions. Commercial property insurance covers damage due to fires and other external factors, but equipment breakdown insurance covers damage caused by internal forces such as power surges.

To ensure that their equipment is protected in the event of an unavoidable problem, DJs should consider adding equipment breakdown insurance to their commercial property insurance.

Additional Types of DJ Insurance

While most DJs work solo, they might need to have additional coverage if they have staff.

These are the three most common insurance policies for DJs and their employees.

  • Workers’ compensation insurance : Employers must have workers’ compensation in all 50 states. It covers employees for work-related injuries or illnesses and pays their medical bills.
  • Commercial crime insurance : This policy covers theft from your company or clients. It does not cover illegal acts by you or your business associates.
  • Non-owned and Hired Auto Insurance: Hired auto (HNOA), covers your liability for cars that you borrow, rent, hire or lease. You may also need a policy if the vans you are renting are used to transport equipment. This coverage may be required if your employees use their own vehicles to do job-related tasks, such as checking out a new location.

Workers’ compensation is the only law-required one of these three. HNOA coverage and commercial crime coverage might be a good idea depending on your specific risks.

Are you looking for the best insurance broker or provider? Our buyers’ guide is specifically designed for DJs.

Bottom line

DJs are known to be very concerned about liability insurance. DJs are exposed to many liability risks due to the amount of people they work with and the equipment that they use. By becoming insured DJs can not only protect their assets, but also meet the contractual requirements of many venues.

However, DJs may also want to consider additional insurance for automobile accidents and property theft.

Interior Designer Insurance: Coverage, Cost, & Providers

The interior designer insurance policy is a business owner’s plan (BOP). It provides affordable coverage for personal injury and property damage, with annual costs of $1,500. Professional liability coverage is also recommended for interior designers. It has a minimum cost of $1,200 per annum and can be combined with commercial auto insurance, which ranges from $1,000 to $4,000.

The Hartford, a highly regarded company, offers insurance specifically designed to meet the needs of interior decorators and designers. The Hartford can help you bundle coverages into a BOP to get the best coverage for your small business. Get a quote from The Hartford in just a few clicks.

The Hartford

How Interior Designer Insurance Works

Interior designers cannot buy just one policy to provide all their needs. They can combine multiple essential policies into one BOP. BOPs are often offered by insurance companies that allow you to add on additional coverages like professional liability and commercial auto insurance. This allows interior designers to have comprehensive protection under one policy.

Bundled coverage can be convenient and save you money in many cases. Interior designers need to choose the right provider to provide the protection they require for various risks. They could be sued, and their office, vehicle, or property may suffer damage.

Interior Designer Insurance: What is the Cost?

Interior decorators and designers insurance costs will vary depending on what coverage you require. The average annual cost of a BOP is $500 to $2,500 for $1,000,000 in coverage, while professional liability policies run around $1,200 for $1,000,000 in protection. The cost of commercial auto insurance is between $1,000 and $4500 annually.

Insurance Type Annual Premium Cost Deductible
BOP From $500 to $2,500 From $0 to $500
Professional Liability Insurance From $1,200 to $2,500 From $500 to $1,000
Commercial Auto Insurance From $1,000 to $4,500 $500
Workers’ Complement $550 – $3,000 $0
Cyber Liability Insurance $600 – $4,000 $0

There are many factors that affect how much you pay for insurance coverage.

  • Your credibility, years of industry experience: Professional Liability coverage is less expensive if you are an experienced interior designer without any history of claims. You can expect to pay higher if you are just starting out, or if you have been sued in the past.
  • The number or vehicles of employees you are insuring. Workers’ Compensation coverage is more expensive for those with more workers, while commercial auto insurance can be more expensive for those with multiple or more expensive vehicles.
  • The property’s value: If your design studio is very expensive and contains antique furnishings, you will need more protection for property damage. To get more protection, you will need to pay higher premiums.


Tip – Because you may need multiple types of insurance coverage you will be charged more if you have them from different companies. It is best to get insurance that meets all your needs. Bundled coverage is a way to get insurance at a lower price. This will not only save you money but also make it easier to file a claim.


Types of insurance for interior designers and decorators

Designers have two protections: protection against property damage and protection against lawsuits. Workers’ compensation coverage is often required because many designers employ employees. Designers can be protected while they travel to clients or stores with commercial auto insurance. Professional liability coverage covers a designer in the event of a lawsuit.

The Most Popular Types of Insurance For Interior Designers and Decorators

Types of Insurance What Does It Cover
BOP General liability and property damage
Professional Liability Insurance Professional failures can lead to professional liability
Commercial Auto Insurance Work vehicle accidents can cause damage or even lawsuits.
Workers’ Comp Insurance Workers in a design company can be injured


BOP policy is a must-have for every designer. This policy provides two types of coverage: general liability coverage as well as property damage coverage.

The following scenarios are covered by a BOP:

  • A BOP includes commercial general coverage to protect a designer who has a client slip and fall in the studio. It covers any lawsuits that may arise from injuries or property damage caused by the designer.
  • Property damage coverage covers the cost of both the repair and replacement of furniture damaged by fires in the design studio.

Designers are at least somewhat vulnerable to someone getting hurt on their premises. A BOP is an essential purchase for most designers.

Professional Liability Insurance

Interior designers provide professional services. The Bureau of Labor Statistics lists states that have licensed interior designers to advertise their services.

If you offer bad advice and recommend a floor that is easily damaged and are sued by the homeowner, a professional negligence insurance policy would pay the legal fees.

Designers could be sued

  • Overbudget projects
  • Advice that doesn’t work
  • Additional costs can be incurred due to mistakes in measurement
  • Failure to finish a project within budget or time

Professional liability insurance is also known as errors and omissions coverage. It pays for legal defense costs, and any settlements or judgments that result from professional misconduct lawsuits. This insurance protects professionals who make mistakes or are negligent in providing expert advice to clients. This coverage will protect interior designers from potential lawsuits and help them to pay their defense costs.


Tip – Insurance companies consider the possibility of a claim. A long-standing track record of success as an interior designer can increase your chances of getting the best coverage. Professional liability insurance can be affordable if you have at least three years’ experience.


Commercial Auto Insurance

Your personal auto insurance may not cover you if you drive personal or business vehicles to clients’ houses. This is because commercial driving policy exclusions can apply. To protect yourself and your property, you will need commercial insurance.

Designers and decorators frequently drive to clients’ homes to look at samples or furniture and view spaces that need decorating. Sometimes, they may transport furniture or materials to clients’ homes. Designers are at risk of an accident while driving. Commercial auto insurance covers damage to cars and legal costs resulting from collisions.

Commercial auto insurance is not necessary if you don’t drive for work or if no one in your company has a work car. If you drive for work, however, you shouldn’t be left uninsured or rely on your auto insurance.

Workers’ Compensation Insurance

Designers might employ support staff such as a receptionist or movers to transport furniture and materials. Workers’ compensation insurance is required for those who work for you.

Workers’ compensation insurance provides protection for you and your employees, providing disability and medical benefits in the case of an injury at work. You may also need to have coverage. States have different rules and require you to purchase a policy. However, some states won’t require you to buy workers’ compensation insurance if you don’t employ multiple workers.

Workers’ compensation is not required if you do not have employees. If you have employees and you have incorporated your company, you might need workers’ compensation coverage if the state law requires it.

There are other types of insurance for interior designers

You might consider cyber-liability insurance if you store client records on your computer, or use expensive software in your design process. You are protected from any lawsuits if there is a data breach. The cost of cyber liability insurance for interior designers is between $1,000 and $7500 per year.

If you are responsible for overseeing projects and also provide advice on interior design, consider contractor’s insurance. Connecticut, for example, requires contractor’s insurance for large contractors who work on commercial, residential, or industrial projects. It is important to note that contractor insurance can be expensive. Builder’s risk insurance could cost you anywhere from 1% – 4% of project costs.

Top Interior Design Insurance Providers

Provider Best for
The Hartford Bundled coverage offers convenience and cost efficiency
Hiscox Interior designers needing specialized liability insurance that is fast and affordable
ASID Insurance Get affordable coverage with the only policy that is specifically tailored for interior designers
Veracity In-house underwriting allows for quick approval of design firms of any size
Insurance Interior design companies that are small need to get quotes in under 15 minutes

The Hartford

The Hartford, one of the most reputable insurance companies in the country, offers policies across all 50 states. The Hartford is known for its ability to innovate and create policies that are affordable, but also offer more coverage options than other insurance providers.

It is unique that The Hartford makes purchasing bundle coverage easy with its Spectrum Business Owners’ policy. Interior designers can enjoy a wide range of optional coverage through The Hartford’s Spectrum Owners’ Policy. You will also have the option to increase your tier within the Spectrum options, which is sometimes referred to as your Stretch level.


Hiscox is a specialist in small business insurance and understands the risks that clients, such as interior designers, face. Hiscox can create customized policies that meet specific coverage requirements. Interior designers can also pay their annual premiums monthly at no extra charge. After completing a short, no-obligation application, you can get a quote online.

ASID Insurance

The American Society of Interior Designers (ASID) is the best at understanding the needs of interior designers. ASID and The Insurance Exchange have teamed up to develop insurance products that protect their members. ASID Insurance will provide you with the best industry professionals and unbeatable products.


Veracity can be a great option if you have a small or large design company that requires coverage. You also want to get it approved as quickly as possible. Veracity is a binding authority with top-rated insurers. Its unique in-house underwriting means you can get coverage faster and still have the option to shop around.


Insureon focuses on small businesses. It is ideal for interior design firms that need to get as many quotes as possible. Insureon is quick and easy to use. You can fill out one application and get multiple quotes from different providers in just 10 minutes. A small-business agent can help you choose the right policy for you.

Bottom line

Although interior design may seem like a low-risk occupation, it can lead to significant financial loss if you don’t have enough coverage. Bundled coverage is a way to ensure your business is protected in the event of a disaster.

What is the difference between Additional Insured and Loss Payee?

Additional insured coverage and loss payee coverage can extend insurance coverage beyond the insured. Contractual agreements often allow for third-party coverage. A loss payee is different from an additional insured in that they can collect payments from the insurer.

The general liability policy does not cover , but neither the loss payee nor the additional insured can change the coverage. They just change who is covered and who is paid out in a claim.

What is an Additional Insured?

Additional insured refers to a person or entity that is exposed due to your business operations. It is covered by your insurance policy as an extension of your coverage. The additional insured is listed on your insurance policy’s declarations page. Although listed, it is not considered a named insured and does not have the right to make any changes or receive checks for claims payments.

Example of an Additional Insured

The lease contract for commercial property will specify the amount of insurance that you must have and the requirement to include the property owner as an additional insured. Your liability is for the property owner in cases such as a slip-and fall accident at your location. However, the property owner requests to be covered by your policy. Your policy protects the building owner if someone sues. This is common in general responsibility or business owner’s insurances (BOPs).

Additional Insured Rights

When an additional insured is named on a business policy, there are certain rights. These rights include:

  • Protection from liability
  • Insurance benefits
  • Only those who have a direct interest in the protection of liability claims are eligible for coverage

The policy is not in the full control of the additional insured. They are not able to change the policy, increase coverage or make cash claims. Their name will not appear on the check if they are not listed on the policy as a loss payer.

How to add an additional insurance

In general, an additional insured is added when requested by a third-party with whom you are contractually engaged. It could be a leasing company that leases your commercial space or another business you are subcontracting or working on a major project.

It is important that you specify when your business would like to be added to another company’s insurance policy. You will need to add your business to their insurance policy if you hire subcontractors or allow someone to use your space for business purposes.

How to add an additional insurance

With a little information about the third person, your insurance carrier may be able to add them as an insured. They will ask for the legal name, address, and telephone number of the third party. If there is a contract number, they will take it. Although most insurance companies don’t charge extra to add additional insureds, it is worth checking with your provider.

What is a Loss Payee and How Does It Work?

An additional insured has more rights than a loss payee. When it comes to property loss, the name insured is not entitled to any claims. This is because the loss payer retains an insurable right in the property, while an additional insured is only mitigating their potential liabilities.

Example of a Loss Payee

A mortgage company that owns commercial property is an example of a loss payer. If the property is damaged or destroyed by fire, the mortgage company will be the most vulnerable. They want to ensure that the funds used to repair or rebuild the property are used in the event of a loss. This is why they have the right to the funds. A frustrated business owner could claim the money and then abandon the property.

Loss Payee Rights

The loss payee is entitled to the first property claim proceeds. However, they do not have complete authority over the policy. They cannot cancel, change or increase coverage. They have the following rights as loss payee:

  • Right to insurance benefits – First right to any proceeds from any property claim for which they have an insurable interests
  • Property protections available to all


Insurable Interest A party with an insurable interest can suffer financial loss if there is a claim. This is often seen in property insurance.


How to add a loss payee

When you buy or lease commercial property such as machinery, real estate, or heavy equipment, a loss payee may be requested to be included. A bank may request that you assign a loss payer to it if they provide you with a loan, line or credit.

How to add a loss payee

Talk to your insurance company to add a loss payer. They will need to know all details about the party including their legal name and address as well as contact information. The loss payee does not change the underwriting of the policy. However, it is best to verify this with your insurance company.

Bottom line

It is important to have the correct third-party designations in your insurance policy so that everyone is properly protected. The third party will most likely tell you if they should be added insured or loss payer. If they refuse to tell you or request more rights, keep in mind that the loss payer has an insurable right in your property. An additional insured needs to be released from liability.

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