Re: 4-plex - Posted by Paul Z
Posted by Paul Z on October 25, 2002 at 16:57:50:
Tyler, you’re right. My last post was internally a little inconsistent. Sorry. What I meant was that non-lawyers can do a lot of the work themselves by reading books about the reasons to have limited liability entities, etc., and non-lawyers can actually set up the entity, maintain the corporate records, etc. themselves as well. On the other hand, legal and accounting advice at the outset to make sure (a) the non-lawyer in question has figured it out correctly and (b) the non-lawyer has figured out most of the issues/problems is a good idea.
I was really just trying to say that you can REDUCE the costs of professional advice by doing independent thinking and research. I did not mean to say that you can (or should) eliminate those costs entirely.
On your last sentence, that may or may not be true. I don’t know. But I know if your assets are in a separate legal entity, it’s much more of a non-issue.
I’m not trying to give you bad news or rain on your parade. Far from it. I want you (and the rest of us on this board) to be wildly successful. I just don’t happen to think it is a good idea to hold investment assets individually.
It is harder and more expensive to set up a legal entity, to do the things you have to do to make sure the courts/law will treat that entity as separate and distinct from you, the individual. But I think it is worth it.
BTW, Ray Alcorn had a post or 2 on this same topic several months ago. If I remember correctly, Ray said that in his business, he owns all his assets in limited partnerships or limited liability companies. And each asset is owned by a separate legal entity.
Food for thought.