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 ]

Comments(1)

  • lavonc21st February, 2006

    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.

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