I'm considering registering a business that I am bootstrapping. At this point I am concerned about keeping costs down. The cheapest option in my state is to register a Sole Proprietorship. The next cheapest would be an LLC. Obviously the LLC gives me protection over personal assets while the sole proprietorship does not.
What liabilities should I consider for a SAAS business? I'm hosting on AWS, so at this time the only thing I can think of is AWS resource usage could cost a lot if not restricted properly. Once I am collecting payment for service there could be liablity there.
Any other thoughts on liabilities that I should consider?
Possible risks for SaaS from top of my head :-
How about you lose someone's data, or confidential data gets leaked, then you'd have a liability, if someone sued you.
The "Limited" in LLC (and Ltd in the UK) is key here, in that you are not personally liable for issues within the company.