Do I Need an LLC for My First Aid Training Business?

Starting a limited liability company (LLC) for your first aid training 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 first aid training business, lawsuits can arise from things like indemnity claims (e.g., a client performing unorthodox first aid training techniques he’s learned in your classes and getting sued by a victim’s family).

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

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

Should I Start an LLC for My First Aid Training Business?

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

You should start 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 First Aid Training Business

By starting an LLC for your first aid training 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.

First aid training businesses will benefit from liability protection because of the risk of being sued for personal injuries, property damage, and libel.

Example 1: You are giving first aid training to a group of employees in your office. The training takes place in an area unequipped with proper safety features, such as protective equipment and railings. A few slips and falls occur during the class, resulting in minor injuries. Limited liability protection can protect you from any legal action that could arise due to such an incident.

Example 2: You are training a group of employees on the proper use and maintenance of first aid kits. During the presentation, you accidentally knock over a kit, causing some of its contents to spill out. An employee who steps in this liquid slips and is injured as a result. Limited liability ensures that any compensation or legal action taken against your business due to this accident will not impact your personal assets.

Example 3: You provide first aid training to a group of volunteers at a community event. One volunteer mishandles the defibrillator and accidentally shocks another person in the audience, causing serious injury. Limited liability protection can shield your personal assets from legal action and compensate any victims who are injured with only your business funds.

Example 4: A former customer sues your business, claiming that your instruction is incorrect and caused them to give improper first aid care.

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 First Aid Training 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 first aid training 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

First aid training 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 loans, grants, and credit.

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

Get Started

How to Form an LLC

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

You can hire a dependable 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?

All businesses need insurance to protect their business assets — even LLCs. This is because the limited liability protection from an LLC protects your personal assets, not your business assets.

First aid training businesses need insurance to ensure their operations are covered in the event of any unexpected liability stemming from their activities. By taking out an insurance policy, they can protect themselves and their clients if any unfortunate accident or injury occurs during a class or training session.

Common Situations Business Insurance May Cover for a First Aid Training Business

Example 1: During a first aid training session at your training facility, a patron trips and falls over something on the floor, subsequently suing you for damages to cover the cost of having the injury treated and lost income from time off of work. Your GLI insurance policy may help cover any costs associated with the lawsuit.

Example 2: A training attendee leaves their belongings on a chair or a table while participating in your first aid training class. While they are away from the table, someone walks up and takes their belongings. Your GLI insurance may cover the costs associated with the patron’s loss of personal property.

Example 3: While walking into your building on an icy day, a client steps on the ice patch and falls, which requires immediate medical attention. Your GLI policy may help cover the costs associated with the client’s injury on your property.

Other Types of Coverage First Aid Training 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 first aid training businesses should obtain:

Workers’ Compensation Insurance

Workers’ compensation insurance helps pay for the costs associated with employees’ on-the-job injuries. Any company that has part-time or full-time employees is legally required to carry this coverage in most states.

Commercial Umbrella Insurance

Commercial umbrella insurance helps cover the costs of any claims or lawsuits that exceed your general liability insurance limits. This type of insurance is particularly helpful if you think you may experience a lawsuit related to an injury at your work location.

Malpractice Insurance

For individuals in the healthcare industry, even first aid training, it’s a good idea to get malpractice insurance. This protects you against unforeseen events related to your training operations. For example, if someone you trained injures another person while performing first aid, you could be held responsible for that injury.

Property Insurance

Property insurance helps protect your training equipment and commercial building from unforeseen covered events and damage.

Commercial Auto Insurance

If you own or rent vehicles for work purposes, you may need a commercial auto insurance policy, which helps pay for any accident-related expenses.

Cyber Liability Insurance

If your first aid training business accepts customer information and payment methods online, you may want to consider cyber liability insurance, which protects you against lawsuits that arise from data breaches.

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, workers’ compensation insurance, and commercial property insurance.

Read our First Aid Training Business Insurance article for more info.

Opening a first aid training business requires writing a business plan, finding office space and signing a lease, and investing in mannequins, AED training kits, safety and training supplies, marketing materials, and an LMS. All these require a sizeable investment capital to acquire and maintain.

Visit our How to Start a First Aid Training Business guide to learn more about the costs of starting and maintaining this business.

A first aid training business will need to pay for marketing, printing brochures and other training materials, travel costs, website maintenance, and rent and utilities if it has a physical location.

Learn more about running a first aid training business.

A first aid training business makes money by charging clients for first aid classes.

Learn more about starting a first aid training business.

A first aid training company instructs people in first aid techniques and offers related certifications. Lessons can include, for example, AED, first aid, blood-borne pathogens, CPR (including pediatric CPR), and instructor training.

A first aid training business’s profits depend on how many people it trains and how much it charges for each training session.

Learn more about starting a first aid training business.