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    A Startup with Solid Liability Coverage: Help Please!


    What is the most cost effective method for a startup with solid liability coverage? I want to test out a product idea I have as well as use this potentially as a launch platform for several others. The per unit price for this first electronic device I am looking at manufacturing and retailing is $80/unit. I am at production now, but I need a business!

    So far though, the liability exposure and the cost to overcome seem prohibitive. What are some extremely low or medium cost options - there must be some.

    I have looked at incorporating, but the $800 min tax in CA with the required insurance, min reasonable amount to fund an account seem a bit much. A sole proprietorship does not look to be ideal considering the potential long term liability exposure (but I could be missing something - maybe there is an insurance policy that is ideal).

    I am a bit frustrated, since all I want to do is run an ad for a couple of months, sell about 50 of these units and decide where/how I want to proceed. I do not want to have to make an extremely long term plan for this business to break even and I want to have full liability coverage. Ideally, this would be a short term break even (or slightly negative venture) and decide where I want to go from there.

    Thanks for any advice!

    I didn't find the right solution from the internet.

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