Legal Question in Business Law in Florida

An attorney will tell you, the best way to handle product liability is by adequate insurance. Setting up a corporation provides an additional layer of protection (in theory), but tends to be more complicated and costly than an LLC. Consult with an attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

In Florida a LLC tends to be more expensive to set up than a corporation. There is very little difference between the two in how they protect and what they can do, though a LLC is more flexible on dealing with profits/losses/control. Corporations are more standardized in structure for the organization.

Assuming you are concerned about being the manufacturer, and not the consumer, both provide protection. However, if you are a single member LLC (single owner) in Florida, that protection is lost and you would not use a LLC for that situation.

Either way, insurance is recommended.