LLC timebombs: Have you read your Operating Agreement lately?
Wednesday, April 01
In my practice, I am often asked, "why do I need a lawyer if an LLC is so easy to form?" Sure, it doesn't take much effort to log on to the Secretary of State's website, but there is much more to LLC formation than just putting your name into a form and paying $125. An LLC operating agreement is ...
Asset Protection Series: How to Make a Creditor Cry "Uncle!"
Sunday, March 29
We can end up in debt far more ways than just by being spendthrift with our cash or failing to pay bills. Real estate is a business, and as a result we expose ourselves to a myriad of liabilities -- lawsuits being the most common. Someday, you might end up as the judgment debtor for more money th...
The charging order: a debtor-friendly LLC law
Sunday, March 29
LLC gurus have often pushed novice investors to organize their LLCs in Nevada or Wyoming or some other faraway state. The charging order is usually the reason why the LLC laws of these states are considered “investor friendly.” Luckily, most states have now adopted these laws and most LLC states ...
Asset Protection Series: Trust me, your assets are safe
Sunday, March 29
In this first installment of my Asset Protection Series, we're going to discuss one of the most basic estate planning tools out there: the trust. A trust is an arrangement whereby someone with assets (the "settlor" or "grantor") wishes to entrust his/her assets with another person (the "trustee")...
Should You Use a Series LLC? Exploring the Pros and Cons
Sunday, March 22
The series LLC is a novel limited liability entity that promises to solve many problems of the real estate investor. This article is meant to highlight some of the pros and cons of using a series LLC in your real estate investment.The ProsThe traditional asset protection advice that gets repeated...
Why Your Single-Member LLC Needs an Operating Agreement
Sunday, March 22
I hear it all the time: "creating an LLC is so easy! It only takes a few minutes!" Most investors log onto their Secretary of State's website, pay their fee and file the state form to create their LLC, and think they're done. Unfortunately, that's not the whole story. A limited liability company ...