LLC And Personal Assets
I have been told that if I form a LLC I can transfer my home (and loan) into the LLC. If I am being sued individually, Could the assets in my home equity be touched if I transfer to an LLC. What if I have a current lawsuit pending? Can I still form the LLC and transfer the house and be protected?
[ Edited by judiepursell on Date 12/05/2005 ]
Finn is accurate. A multi-member LLC is safer IF you get sued but a single member serves the purpose as well. There have been cases in court where the single-member LLC was found as a "front" due to several reasons. In order to establish your LLC as legitimate you should:
1) Conduct and record an annual meeting
2) Keep ALL funds separate
3) Document, document, document it as a legitimate business
BTW, Wyoming offers the same advantage of NV except it is less expensive AND NV is rumored to introduce a corporate tax... you know ...to tax all those S Corps, LLCs and C Corps they have marketed to for years.