LLCs for Dummies

[Audi Junkie]

Yeah, so I'm busy finalizing the latest transactions of my LLC and my cousin, who works ata bookstore, calls and says he has this book for me. It's a pretty big eye opener into what can and does happen to personal assets and even corporate liabilty w/o the LLC entity. I always let the lawyer do everything, so I never really looked into it for myself, but if you THINK you need an LLC, you needed one a year ago.

It says the average American is sued twice in a lifetime. It also explains how if you are sued, you assets can be immediately attached and you can't sell nor borrow against them for legal and costs of living.

Right now, I'm trying to wind down my entanglement with these type of situations. It's pretty sad and really is not worth it. As much as I think certian people could be rung out dry for things they have done, I'm trying to turn the other cheek. I have a front-row seat for the case where my neighbour is being sued for $2m by his former biz partner, who is likely to win, big time. He got his LLC 2 years too late, wa-wa. Another guy I kow just won $160k in costs against a guy who sued him for harassing him out of his home...and lost. I think the guy who I'm friends with regrets his nasty actions, but never was held liable.

It seems like there are no rules out there for right/wrong and things are often not as clear-cut as people expect in court.

Just a word to the wise.

 

[cmhj]

Not that I've ever had any issues but I have all my business activities under a LLC. When one understands the possible implications, getting a LLC more than makes sense & costs very little.

 

[rjundi]

I can't even imagine why you would not setup. For a sole proprietorship like I have I had my tax person research the form and fill out for $100 charge. He said I could do it too and no lawyer needed. It was a minimal fee with the state of NH, I believe $100/year to renew.

 

[Win]

I think you really ought to visit with your lawyer and your accountant before making up your mind.

There are advantages and disadvantages to each type of business entity, depending on your objective for that entity or what benefit you want to derive from it.

Right now, I have businesses/property in a subchapter c corporation, another in an LLC, and some in my name personally and as a sole proprietorship. Each has stregths and weaknesses.