Real estate investor attorney

[Christopher Diaz]

My name is Chris, i am currently investing in scranton and just wondering if it make sense to set up LLC or just keep the investment under my name.

[Jason Marino]

Hi Christopher,

If you are risk averse, a combination of insurance and an LLC is a good way to protect your assets. Insurance coverage can be and is denied for various reasons. At that point, it is useful to have the property owned in a limited liability vehicle. I think that veil piercing should be a consideration in the decision to get an LLC or not, but it should not be the sole consideration. LLCs exist for a reason, and, when created and operated in the right way, they will generally withstand a challenge. Veil piercing not a default process for LLCs. You can research the standard in the State where your LLC is located. There is a test generally that must be passed in order to pierce the corporate veil that usually includes several factors.