Forming an LLC
09-29-2005, 11:19 PM
#1
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This is kind of an odd place to ask this question, but you never know around here, maybe someone will have an answer.
All this lawsuit talk got me to thinking about asset protection, as I see it there are a couple options and LLC or a Trust. I like the looks of the LLC, although I am a little confused as to how assets are transferred into the LLC. Do you just give them to the LLC? How about stocks and bonds, is it simple to transfer them to the LLC? Bank accounts?
As I see it it's a good idea, current situation aside, say you get in an auto accident and your insurance doesn't cover it, you get sued, a good portion of my funds could be protected in the llc.
Anyone know any info?
All this lawsuit talk got me to thinking about asset protection, as I see it there are a couple options and LLC or a Trust. I like the looks of the LLC, although I am a little confused as to how assets are transferred into the LLC. Do you just give them to the LLC? How about stocks and bonds, is it simple to transfer them to the LLC? Bank accounts?
As I see it it's a good idea, current situation aside, say you get in an auto accident and your insurance doesn't cover it, you get sued, a good portion of my funds could be protected in the llc.
Anyone know any info?
09-30-2005, 01:02 AM
#2
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i think some of those things need to "buy" all the assests for "fair market value" i forget we looked into this stuff for k2. i think we were primarily looking at the llc, but i'm a little fuzzy on that
09-30-2005, 04:33 AM
#3
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i know theres a state where it only costs a couple hundred bucks to open/register an LLC, maybe arizone or something. It's how the scam artist places can get away with that kinda ****. Had an article somewhere on it.
kevin.
kevin.
09-30-2005, 06:08 AM
#4
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I dont know if you can put yourself personally in a LLC
you can have a business that is a LLC or a corporation that protects you as a person, but I dont know if a person can become one on his own for the purpose you state
A LLC is just a different type of corporation anyhow, basically it gives you some different choices as a business, like lets say you want to bring in a investor to expand your business, you can bring them in without giving up any control of the LLC itself where as a corporation they would get a vote in the board meetings your supposed to have, you end up having to share control of the business with a corporation.
Lets say a business which owns a piece of property- the property goes under its own corporation, you become ABC Realty Inc, then the business becomes a LLC- ABC Repairs LLC, therefore either is protected on its own without affecting the other or the you the owner.
Anywho- I dont think you can just become Scott Martin LLC and have everything you own protected, you would actually have to have the LLC own everything, guess you could then lease it from the LLC or something along those lines.
you can have a business that is a LLC or a corporation that protects you as a person, but I dont know if a person can become one on his own for the purpose you state
A LLC is just a different type of corporation anyhow, basically it gives you some different choices as a business, like lets say you want to bring in a investor to expand your business, you can bring them in without giving up any control of the LLC itself where as a corporation they would get a vote in the board meetings your supposed to have, you end up having to share control of the business with a corporation.
Lets say a business which owns a piece of property- the property goes under its own corporation, you become ABC Realty Inc, then the business becomes a LLC- ABC Repairs LLC, therefore either is protected on its own without affecting the other or the you the owner.
Anywho- I dont think you can just become Scott Martin LLC and have everything you own protected, you would actually have to have the LLC own everything, guess you could then lease it from the LLC or something along those lines.
09-30-2005, 06:54 AM
#5
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Some general info here.
http://www.form-a-corp.com/def_llc.php
Q: How many people are needed to form an LLC?
A: An LLC must have at least one member in all states except Massachusetts, where a minimum of two members is required.
I also have a good friend who's been in business for himself for years. I'll ask him about it.
http://www.form-a-corp.com/def_llc.php
Q: How many people are needed to form an LLC?
A: An LLC must have at least one member in all states except Massachusetts, where a minimum of two members is required.
I also have a good friend who's been in business for himself for years. I'll ask him about it.
09-30-2005, 10:07 AM
#6
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Well it can be used much like a trust to protect assets, I know with a trust you just transfer everything to the trust, you don't sell anything to it, I think I am gonna get with a lawyer and see if LLC or lawyer is a way to go. I know a guy in washingto who went the LLC route, I guess i could give him a call.
09-30-2005, 01:42 PM
#7
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I own an LLC. You really have no liabity protection especially as a single share owner.It does allow other corporations to own your stock or vice versa.I have the store under the main LLC and the Bar and Grill with its seperate licsense under it also.
It takes expensive law firms to protect you. Any business will protect your with its liability insurance , but say your at fault in a wreck. You can be sued any way especially if your GL for the business is not enough for the plaintiff.
Besides not many line of credits or vendors allow you to do business with out your personnal guarantee which by-passes the corporate block if you go under or dont pay your debt.
It takes expensive law firms to protect you. Any business will protect your with its liability insurance , but say your at fault in a wreck. You can be sued any way especially if your GL for the business is not enough for the plaintiff.
Besides not many line of credits or vendors allow you to do business with out your personnal guarantee which by-passes the corporate block if you go under or dont pay your debt.
09-30-2005, 01:49 PM
#8
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Originally Posted by l8t apex' post='765003' date='Sep 30 2005, 02:42 PM
I own an LLC. You really have no liabity protection especially as a single share owner.It does allow other corporations to own your stock or vice versa.I have the store under the main LLC and the Bar and Grill with its seperate licsense under it also.
It takes expensive law firms to protect you. Any business will protect your with its liability insurance , but say your at fault in a wreck. You can be sued any way especially if your GL for the business is not enough for the plaintiff.
Besides not many line of credits or vendors allow you to do business with out your personnal guarantee which by-passes the corporate block if you go under or dont pay your debt.
It takes expensive law firms to protect you. Any business will protect your with its liability insurance , but say your at fault in a wreck. You can be sued any way especially if your GL for the business is not enough for the plaintiff.
Besides not many line of credits or vendors allow you to do business with out your personnal guarantee which by-passes the corporate block if you go under or dont pay your debt.
Well I am not really looking to protect business assets, just personal assets, I know with a trust it can be done, that may be the way to do it then.
09-30-2005, 02:12 PM
#9
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And I think you are thinking of it in terms of protecting corporate assets, I am thinking in terms of an LLC that doesnt incur liability by doing any kind of business therefor protecting my personal assets in the shelter of the LLC.
From what I have read, you sue me personally and you can take my corporate shares as assets, but with an LLC you don't have to issue shares, "members" dont physically own anything.
From what I have read, you sue me personally and you can take my corporate shares as assets, but with an LLC you don't have to issue shares, "members" dont physically own anything.
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