Attorneys: Site samples of case studies that prove LLC's are a must

[Yoochul C.]

Ok, so I see so many topics about LLC's. If they're needed or not. I am on the fence whether these attorneys that post topics that say its a must in order to forward their own agenda or if they are actually providing good advice. I see people saying stuff and blah blah blah. So I say this. I challenge you attorneys to site case law, articles, examples of where a LLC has actually help to protect a person from any lawsuits.

I ask for some instances such as the events that have actually killed tenants.  Such examples are the Northridge earthquake, Hurricane Katrina, etc...  Please settle this once and for all.  

Thank you

Yooch

[Rob K.]

Here is a case where an attorney screwed himself by making an LLC trustee of his trust and the lender made him sign a personal guarantee for a loan:

https://scholar.google.com/scholar_case?case=16078...

This is very specific to California and the use of an LLC in this case resulted in the attorney losing anti-deficiency protection he would have otherwise had if he had been the principal borrower on the loan. Because he used a LLC as trustee on a loan and guaranteed the loan, he was personally liable for a deficiency after the lender completed a non-judicial foreclosure.

I am not saying that using an LLC is necessarily a bad idea. One can endlessly create factual examples where use of an LLC is a is a good idea and others where it is a bad idea. To debate the issue in a vacuum is a bit pointless. It all comes down to the specifics of a situation, one's risk tolerance and cost benefit analysis given one's particular goals and objectives. I have some properties I manage myself that I have owned in my name for over 20 years and others I do not manage myself vested in LLCs and corporations in order to establish a significant layer of protection. No matter how many threads debate the issue, there will never be one right answer for every situation.