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Updated almost 7 years ago,

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12
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0
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Arn S.
  • Gainesville, GA
0
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12
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LLC outside protection

Arn S.
  • Gainesville, GA
Posted

My wife and raise and sell cattle and started an LLC partnership in GA a couple of years ago with Operating agreement and annual meeting minutes, and all that is required. We also had an attorney draw up a Quit Claim Deed and put our property where we live and also raise cattle in the LLC's name for pre-emptive (no foreseeable debts) outside asset protection from personal creditors (ex. medical bills). We gave up our homestead exemption, and I know if we ever sell house we would need to quit claim deed back to us for two years prior in order to get the $500k capital gains exemption. This is the only asset in the LLC other than farm equipment and cattle we depreciate on 4562, there are c couple of barrns on property we depreciate as well but do not depreciate our house. We use a seperate checking and credit card account for the LLC and file 1065 Schedule K's from business.

The only recourse in GA for personal creditors in regards to an LLC, is a charging order against debtors share of distributions from LLC.

If one of us were to get sued personally, do you think our LLC "corporate veil" would be pierced and creditors could attach lien to house and property?

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