Posted by Dano on February 28, 2002 at 18:54:42:
J.P. Vaughan? Is that Jamie in AZ? If yes, please acknowledge…could it be?
Question for William bronchick - Posted by Betty
Posted by Betty on February 28, 2002 at 07:51:44:
I’m going to order your “How to form your own LLC” course in a few days.I also have a few questions I would like to ask you if you have time.I have 17 SFR in my name and would like to get some asset protection and LLC looks like a good way to go.My first question is since I orginal took title in my name there is a paper trail ( mortgages recorded at courthouse.etc ) should I still put properties in a trust before I put each one in a LLC.Any lawyer can punch up my name and it will show I own these rentals with or without a trust.Second question,Some of my rentals I L/O to my tenants.What happens if they exercise there option an I have it in a LLC.My LLC would be a single member.
Re: Question for William bronchick - Posted by Bronchick
Posted by Bronchick on February 28, 2002 at 12:31:41:
The fact that a paper trail is behind you is something you can’t change. It’s still better than being in your name. The LLC will give you protection, but the fact that you used to own it may give a creditor a clue. Even still, the creditor has an ADDITIONAL step, which is to try to unravel your artwork.
The single member LLC is tax-neutral, which means the sale of the property is taxable to you.
Re: Question for William bronchick - Posted by J.P. Vaughan
Posted by J.P. Vaughan on February 28, 2002 at 11:26:43:
Bill Bronchick is the co-host of our “Legal Forum.” You might try posting your question there too.
Re: Question for William bronchick - Posted by janice
Posted by janice on February 28, 2002 at 09:38:24:
Hopefully Bill or an expert will come along and answer your questions, but until then I’ll get the ball rolling…
Yes there will be a paper trail, and it would be nicer if that wasn’t the case, but it is, so don’t dwell on it.
The important fact is that should someone check to see if any property is in your name now, it would appear that there isn’t. They may speculate that you still own them, but they can’t be certain. If they go to place a lien against all your properties, they couldn’t do it. They would first need to convince a judge that you probably own it, then they would need to depose you, at the deposition your lawyer could make it very difficult from them to acctually nail down the ownership. Furthermore if they did establish ownership they would have a difficult time nabbing all your properties if the LLCs were constructed.
Unless the action was due to the asset, non performance of a note on the asset etc., the best a prevailing party could get is a charging order against the LLC, but to be honest I don’t know if a single member LLC will offer the same level of protection as a LLC with 2 or more members.