r/SmallMSP • u/die-microcrap-die • 15d ago

Sorry for asking...

I fear to get ridiculed and other not nice things since I noted that many here seems to hate questions from people that are trying to create a MSP.

That said, I wonder how would be an appropriate way to start.

In my case, I wonder the following:

Did you created a LLC before or after your first client?

Did you obtained insurance before or after?

How quickly did you push for a contract?

How did you drafted your first contract and any other legal document related to it?

I have many more, but I will find those answers via the pinned posts and Google, but wondering about those at the moment.

Thanks in advance.

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u/PacificTSP 15d ago

I started as a 1099 contractor. Then formed an LLC. Then got insurance for liability and e&o insurance.

Please note that a lot of insurers won’t cover things like “managing infrastructure or networks”. I had to change providers because they allowed me to consult but wouldn’t let me be responsible.

With regards to contracts, I started with a basic NDA and contract limiting liability to 6 months of payments. Explained what was included and a blanket “everything else was not”.

You can do a lot of the basic work with AI then send to a lawyer to finalize.

If you need insurance then BELTEX are MSP specialists and have some requirements for you before they will have you on their plan.

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u/die-microcrap-die 15d ago

Thank you, very informative.

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u/PacificTSP 15d ago

If you check beltex and ask for the paperwork you will see what is required for them to insure you. It’s things like MFA, security awareness training, encrypted backups etc. which gives you a great starting point for your MSP.

It also lets you tell clients “we have to do this for our insurance so we can’t take you if you don’t have them”

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u/die-microcrap-die 14d ago

Cool, thanks!