Legal Question in Employment Law in California

Consulting Services Liability
I am leaving a permanent position to enter the consulting market (computer engineering). My first contract is through a consulting company that is paying me by W-2. From what they've told me, I'm covered under their liability insurance because of this. If I wanted to do independent consulting in the future, where I get paid directly by the company I'm doing work for instead of going indirectly through a consulting or placement firm that pays me, how do I ensure that I am not personally financially liable due to my services, bodily damage, property damage, etc. If they pay me through W-2 instead of 1099, is that enough? Do I need liability insurance? Do I need to start a corporation? Do I need a special legal agreement with the employer? (Note: I do not have a P.E. license)

Asked on 10/13/98, 2:31 pm

Ken Koury Kenneth P. Koury, Esq.

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Re: Consulting Services Liability

There are basically two way to protect your personal assets.

1. insurance

2. form a corporation or LLC

Ken Koury

Kenneth P. Koury, Esq.

5807 Topanga Cyn Blvd., Suite G-201

Answered on 12/29/98, 3:24 pm

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