Legal Protection And An S-corp

If you get an S-corp as your entity for real estate, are the owners protected in case of a lawsuit? Since the income passes through to the owners, how about the liabilities?

Comments(9)

  • NewKidInTown34th August, 2007

    What protection are you asking about?

    If the lawsuit arises from activities within the S-corp, then your liability exposure is limited to the assets held by the corporation.

    If you are sued personally, the S-corp will not protect your interest in the corporation from a judgement creditor.[ Edited by NewKidInTown3 on Date 08/04/2007 ]

  • rglover5482nd August, 2007

    Depends, how long was she in the house. How much was she paying you.

    If it was over 6 months...you are in a little trouble.
    If the rent was more than 50% market...she probably has tenancy rights.

    But looks like you are in a small town, call the sheriff or judge and work it out with your tenant.

  • detroit_landlord5th August, 2007

    Tenant moved out.. Thanks

  • finniganps6th August, 2007

    I hate to ask, but is this that guy who is a member of your Hawaii property that you were looking for a buyer of his interest (the unreasonable guy with the helicopter operation)? UGG

  • cjmazur6th August, 2007

    LAWSUITS ARE EXPENSIVE. Can you try and negotiate an agreement.

    What would you use asthe theory of law? The non-existent sales agreement? LLC agreement (what did he/she breach), etc.

  • ddipaola27th July, 2007

    Thank You!!!!

  • cjmazur27th July, 2007

    and with oil and gass where they are at, I hope you make a fortune.

  • ddipaola6th August, 2007

    Status so far.....Baker Botts actually represent Carizzo Oil and then they refered me to the Dallas Texas Bar association. The search continues.......Thank You again

  • ypochris6th August, 2007

    My friends have a natural gas well on their property. The best thing they got from it was they were allowed to use as much of the gas as they wanted for free. When the well no longer had commercial value, there was still plenty of gas to heat all their houses with the windows open all winter. they use t www.still.I would try to get a clause like that if they find natural gas- the value to the producer of what you use will be small, but to the property owner free gas is huge.

    Chris

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