Should I Start an LLC for My Stained Glass Business?

Starting a limited liability company (LLC) for your stained glass 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 stained glass business, lawsuits can arise from things like selling copyrighted designs without permission, fraudulently misrepresenting the durability of your glass, and personal injury suffered by customers on your business premises.

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

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

Do I Need an LLC for a Stained Glass 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 Stained Glass Business

By starting an LLC for your stained glass 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.

Stained glass businesses will benefit from liability protection because of the risk of property damage and even personal injuries.

Example 1: A woman is browsing your stained glass business’s showroom when she trips over a loose tile. After suffering a serious head injury, the customer files a lawsuit against your business for the medical expenses resulting from the fall. In this instance, limited liability would ensure that any business obligation to pay damages does not extend to your personal assets.

Example 2: An employee of your stained glass business starts producing designs that are very similar to those of a popular online artist. When the artist discovered this, he filed a copyright infringement lawsuit against your business since it had been using his designs without permission. In this scenario, any responsibility to pay the plaintiff a settlement can only be imposed against your business’s assets.

Example 3: In order to make a sale, an employee claims that the windows your business sells are made with a specific type of glass that lasts longer than normal glass, despite this being untrue. After discovering the truth, the customer decided to sue your business for fraudulent misrepresentation. In the ensuing litigation, your personal assets are completely protected from any business liability to pay damages that may arise.

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 Stained Glass 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 stained glass 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

Stained glass 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 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?

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.

A stained glass business has several assets that would benefit from business insurance protection, such as any equipment needed to make the stained glass as well as the actual commercial building.

Common Situations Business Insurance May Cover for a Stained Glass Business

Example 1: While entering your restroom, a customer slips on some wet flooring, breaks an arm, and decides to sue you for damages. General liability insurance would cover your legal defense costs and any required settlement.

Example 2: A competitor files a lawsuit against your business for libel. While you disagree with the accusation, you know you need to hire a lawyer to protect your business. General liability insurance would pay for your legal defense and any required settlement.

Example 3: During a tour of your facility, a visitor trips over a box, breaks a wrist, and asks your business to pay for his medical treatment. General liability insurance would cover his medical expenses

Other Types of Coverage Stained Glass 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 stained glass businesses should obtain.

Product Liability Insurance

While you strive to produce beautiful stained glass products that satisfy your customers, there’s always a chance someone might decide your product caused them injury. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.

Commercial Property Insurance

You made a major investment in the equipment and supplies you use to create your stained glass products. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building and the business materials stored there.

Workers’ Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for your 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 workplace 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, commercial property insurance, and workers’ compensation insurance if you have employees.

Read our Stained Glass Business Insurance article for more info.

Owners of stained glass businesses can expect to require between $2,000–$10,000 in order to get started. A large portion of this figure will be apportioned toward purchasing the basic tools necessary to conduct your business, such as a soldering iron, stained glass solder, masks, glass, and a large table.

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

Administration, payroll, supplies, and marketing are the primary ongoing expenses.

Learn more about running a stained glass business.

A stained glass business sells original and commissioned pieces.

Learn more about starting a stained glass business.

A stained glass business sells both original and commissioned pieces of stained glass for use in windows, lamps, jewelry, and other items. A skilled business owner can also offer repair and architectural installation services.

Your skills, knowledge, and the kind of glass you create largely determine your profits.

Learn more about starting a stained glass business.