Asset Protection/LLC Question in Pennsylvania

[Anna W.]

Hi all,

We are in the process of moving our rental properties that we under personal names into an LLC. We currently have tenants that have been living there for four months already and I'd like to know that if they decide to file a suit against us in the future when the LLC is already in place, would the judgment only be against the LLC or would it be against my personal estate since they were living in the house prior to it becoming an LLC? Any advice would be greatly appreciated. Thank you in advance!

[Patrick Liska]

I would think it would depend on when the action that they are suing you about happened. if it happened while under your name then they can go after you, if it happens after you form your llc, then the llc would be sued. forming an llc now to try and protect you from something that has happened already will not protect you.