Last Updated: May 10, 2024, 1:38 pm by TRUiC Team

Should I Start an LLC for My Baseball Hitting Coach Business?

Starting a limited liability company (LLC) for your baseball hitting coach business can provide several benefits. 

Most importantly, an LLC structure offers limited liability to its owners, which can protect their personal assets from lawsuits and creditors.

For a baseball hitting coach business, lawsuits can arise from things like hiring inadequate coaches or customers getting injured within your business’s premises. 

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your baseball hitting coach business seem more credible. 

Recommended: Use Northwest to form an LLC for $29 (plus state fees).

A coach demonstrating batting stance for a child

Do I Need an LLC for a Baseball Hitting Coach Business?

LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes.

You should form an LLC when there's any risk involved in your business and/or when your business could benefit from tax options and increased credibility.

LLC Benefits for a Baseball Hitting Coach Business

By starting an LLC for your baseball hitting coach business, you can:

  • Protect your savings, car, and house with limited liability protection
  • Have more tax benefits and options
  • Increase your business’s credibility

Limited Liability Protection

LLCs provide limited liability protection. This means your personal assets (e.g., car, house, bank account) are protected in the event your business is sued or if it defaults on a debt.

Baseball hitting coach businesses will benefit from liability protection because of the risk of workplace accidents, trademark infringement, libel and slander allegations, and even property damage. 

Example 1: An employee for your business is coaching a customer when he becomes distracted by a co-worker, resulting in the pitching machine firing a ball that struck the customer in the head and caused a serious concussion. The customer decides to sue your business for this negligence as a result of the physical injury he suffered. If your business is found liable to pay damages, the compensation will be limited to your business’s assets.

Example 2: In order to convince a parent to enroll in an expensive premium baseball coaching course, an employee greatly exaggerates the improvements her son will make with your business. After years of mediocre results, the parent decides to sue your business for misrepresentation of the service that was delivered. Limited liability would protect any compensation you might owe from being imposed upon your personal assets.

Example 3: After finishing up for the day, an employee at your baseball hitting coach business crashes into a customer’s vehicle in your car park. This leads the customer to sue your business for the property damage she suffered. In this instance, your personal assets would be protected from any of your business’s liabilities.

Example 4: While you demonstrate a batting technique to a student, the ball flies into a group of onlookers and gives someone a concussion. The injured person goes to the hospital and later asks you to cover their medical bills.

An LLC will also protect your personal assets in the event of commercial bankruptcy or loan default.

To maintain your LLC's limited liability protection, you must maintain your LLC's corporate veil.

LLC Tax Benefits and Options for a Baseball Hitting Coach Business

LLCs, by default, are taxed as a pass-through entity, just like a sole proprietorship or partnership. This means that the business's net income passes through to the owner's individual tax return. 

The business’s net income is then subject to income taxes (based on the owner's tax bracket) and self-employment taxes.

Sole proprietorships and partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options.

S Corp Option for LLCs

An S corporation (S corp) is an IRS tax status that an LLC can elect. S corp status allows business owners to be treated as employees of the business (for tax purposes).

S corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.

The S corp status requires that the business pay the employee-owner(s) a reasonable salary for the work they perform. 

In addition, the business might need to spend more on accounting, bookkeeping, and payroll services. To offset these costs, you'd need to be saving about $2,000 a year on taxes.

We estimate that if a baseball hitting coach business owner can pay themselves a reasonable salary and at least $10,000 in distributions each year, they could benefit from S corp status.

You can start an S corp when you form your LLC. Our How to Start an S Corp guide will lead you through the process.

Credibility and Consumer Trust

Baseball hitting coach businesses rely on consumer trust. Credibility plays a key role in creating and maintaining any business.

Businesses gain consumer trust simply by forming an LLC.

A growing business can also benefit from the credibility of an LLC when applying for small business loansgrants, and credit.

Northwest will start an LLC for you for just $29 (plus state fees).

How to Form an LLC

Forming an LLC is easy. There are two options for forming your LLC:

  • You can hire a professional LLC formation service to set up your LLC for a small fee
  • Or, you can choose your state from the list below to start an LLC yourself

Select Your State

For most new business owners, the best state to form an LLC in is the state where you live and where you plan to conduct your business.

Do LLCs Need Insurance?

Put simply, yes. Your LLC will need insurance just like all others. If you were to forego this necessity, your business assets would be vulnerable to any of the many liabilities facing your business every day.

Where insurance protects business assets, the limited liability of LLCs protects your personal assets (i.e. house, car etc). It is does by preventing business liabilities from extending to your personal assets.

Common Situations Business Insurance May Cover for a Baseball Hitting Coach Business

Example 1: While you demonstrate a batting technique to a student, the ball flies into a group of onlookers and breaks someone’s nose. If that person demands you pay for their medical care, general liability insurance would cover their medical treatment.

Example 2: A competitor files a libel lawsuit against your company. While you disagree with their claim, you want to hire an attorney immediately. General liability insurance would pay for your legal defense and any required settlement.

Example 3: While visiting your office to discuss his son’s performance, a parent slips on a wet spot on the floor, breaks a wrist, and sues for damages. General liability insurance would cover your legal costs and any awarded damages.

Other Types of Coverage Baseball Hitting Coach Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all baseball hitting coach businesses should obtain.

Professional Liability Insurance

While you strive to coach your students in a way that helps ensure their success, there’s always a chance one might claim your coaching caused them harm. If a student or parent files a lawsuit based on your coaching services, professional liability insurance would cover your legal fees and any required settlement.

Commercial Auto Insurance

Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also sufficient protection for any business equipment or supplies you carry in your vehicle.

Workers’ Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for both part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Should I Start an LLC FAQ

Choosing the right business structure depends on your business’s unique circumstances and needs. However, unless your business is very low risk (like a hobby), an LLC is likely the better option.

Visit our LLC vs. Sole Proprietorship guide to learn more.

At a minimum, you’ll need general liability insurance.

Read our Baseball Hitting Coach Business Insurance article for more info.

The startup costs for a baseball hitting coach business are relatively low. The main expense you will be faced with is the baseball equipment you will need to carry out your coaching.

Equipment includes items such as bats, gloves, and potentially even a batting cage. In addition to this, it would be prudent to invest in insurance and a website to advertise your business.

Visit our How to Start a Baseball Hitting Coach Business guide to learn more about the costs of starting and maintaining this business.

The main operating expenses for a baseball hitting coach business will depend on if you travel to meet clients or if you have your own training facility. Rent and utilities for a facility would probably represent two of the biggest expenses. Others include insurance and marketing.

Learn more about running a baseball hitting coach business.

A baseball hitting coach business makes money by charging for hitting lessons — both for individuals and for entire teams.

Learn more about starting a baseball hitting coach business.

As the name suggests, a baseball hitting coach business provides baseball-related coaching to students of all ages and abilities.

Baseball hitting coaches typically charge between $20 and $100 per hour. 

Learn more about starting a baseball hitting coach business.

Related Articles

Article Sources

IRS: Limited Liability Company

IRS: S Corporations


SBA: Small Business Guide

SBA: Choose a Business Structure Guide

US Census Bureau: Small Business Statistics

SBA Office of Advocacy: Data on Small Business

FRED: SBA Data for Small Business