Re: Is this too expensive? - Posted by Jimmy
Posted by Jimmy on April 21, 2007 at 13:06:01:
I have no quarrel with attorneys earning fees. I charged a LOT more than $3000 to many of my clients. it all depended on what I was doing, and for whom I was doing it.
there is no asset protection that is iron-clad. LLC’s and other limited liability entities do a pretty good job of isolating risks among activities and properties, and separating your personal stuff from the entity’s stuff.
but before you bite off on an asset protection plan, be clear about what you are trying to avoid. are you in a high-risk pccupation (e.g., surgeon)? or is it premises liability you worry about? or is it a grneralized, non-specific fear of being sued?
if the latter, you are being paranoid.
if one of the former, think hard about how he claim can arise.
there are top-down liabilities and bottom-up liabilities.
top-down is not fun. YOU get sued for drunk driving and running over 10 trial lawyers. $100,000,000 udgment. kiss your LLC membership interests goodbye, along with your S corp stock, plus everything else you have that is not protected by state law. and when they grab your entities, they grab what’s inside of them.
bottom-up is different. it comes up inside the entity, and is usually contained there. you have 5 rent houses inside one LLC. a tenant steps throug a rotton railing on the balcony and falls to her death. uh oh. $10,000,000 verdict. kiss all 5 houses goodbye, plus anything else owned by THAT llc. Assuming you treated the LLC like a real entity, your other assets and other entities should be Ok. but expect the planitiff’s counsel to kick the tires pretty hard to make sure.
here’s my advice:
conduct your self honorably and responsibly at all times
carry plenty of insurance, including GL.
take care of problems imediately and conscientiously.
4, don’t concentrate too much wealth in one entity.