LLC controversy

[Mark Forest]

The company entity issue continues to come up on this board as well as my landlord’s association. Here is a site that recommends against an LLC or corp.: http://www.johntreed.com/entity.html

For example it states:
“But in a tort where someone is damaged by your negligence, for example, you can’t say, “You have to sue my corporation.†The tort victim never signed a contract agreeing to that. They were just minding their own busiess when you hurt them. They can hold you responsible.â€

This site makes strong arguments. I am new to this so I just want to get all of your comments.

[NOTE FROM ADMIN - Our legal blogger has posted a direct response to this post that is an important read for anyone concerned about liability. It breaks down all the false info being spread on the subject: Please read:
Piercing the Veil: Holding Owners Liable for the Acts of the Business]

[Ned Carey]

John Reed doesn't have a lot of credibility in my eyes. From your link:
>asset-protection strategies are of questionable legality and ethicality.

That shows total ignorance on his part as to why the concept of corporations and entitles were created in the first place.

There is no controversy about LLCs. There are pros and cons to using various entities. You must understand what they will do for you and what they will not do for you. You must understand how to operate them properly.

LLCs and not a cure all for asset protection however I will not own an investment property in my own name. I highly recommend the books by NOLO Press on LLCs. Nolo is a self help legal company and they will give you a good understanding of them. I don't recommend "do it yourself" legal work, but I do recommend being educated when you talk to your legal professional.