All Forum Posts by: Mitchell Zoll

I have used Doug Plummer at Midtown Title (part of Independence Title) for my personal investment transactions as well as VERY complex M&A transactions where my client purchased an entity with substantial real estate holdings. They were flawless, they were ahead on every step, and when we had a slight issue with one of the parties they proactively identified a solution to keep the transaction on track.  Can't recommend them enough.  

There are a bunch of questions you want to make sure you answer. This might be a residential property but this will be a business transaction. Will you have a personal guarantor? Have you reviewed the company agreement to know who will own the business? Can the LLC rent from you then change ownership of the LLC? (If that happens your "tenant" won't change but in reality it will). Are you sure they aren't just going to sublease? It won't be the same as renting to a person so make sure you are prepared for doing business differently.

you need it MORE because you have two members.  There should be no point in time when you are working together and agreeing on the future of the business.  Now is the time to have the hard discussions about how you will operate, how you will terminate, and how you will manage the business. This is not about "asset protection", this is about running a business. 

Congrats on the baby on the way!  Exciting times.  To answer your question -trusts are used as part of an estate plan to direct ownership of your property after you die - either passing it to another person or, for your baby’s sake, holding it under the control of another person til the baby becomes an adult. It’s part of a bigger process (including a will and docs for you if you need help) and you don’t want to miss a step, so don’t just google this one.  Talk with a NY lawyer about your plans and preferences and they can make it happen. 

Darn it! Lawyers are always left off the list!

We are really nice people, Max (at least some of the time). Let us know when lawyers get invited to the party and you can get some of us on the "team". 

Check out the attorneys in the Knox County Bar association directory.  Attorneys who are involved with the local bar are great places to start. They are connected with and serve the local legal community.  https://knoxbar.net/member-directory/

This is a lot easier than folks make it but it requires thinking about this correctly. Here's the important part: You are not your LLC.

You aren't "shielding" YOUR assets, you are removing the assets from your personal ownership and giving them to an entirely separate entity.  If you need to run this as a business through an entity (and talk with an attorney before you make that decision), then do that. Own the property in the name of the entity, take in the rent through the entity, get the mortgage in the entity, and communicate with tenants, vendors, etc as the entity.  Don't put some parts - the property/lease/bank accounts - in the name of the entity without taking to a lawyer who has handled a case in court and can tell you how these cases play out. Use the lawyer to learn to operate the business, not just to fill out forms. 

A good place to start when looking for an attorney referral is your local bar association.  Small Firm section or real estate section members are usually good attorneys who are involved in the legal community. When you go to the attorney, you should not be paying for forms. As others have said, you can get those online (but don't use those unless you already know what you are doing!).  The lawyer should be educating you, both in ways that the LLC works and the way to operate your business. For example, if you are setting up a complex structure for "anonymity" ask how it actually works in litigation based on their case experience. ( ex. how that will hold up if there is litigation and the "LLC" needs to be deposed. It will likely be you, so it won't be annonymous). Lawyers learn the law by studying actual cases. They should teach you using the same method. Good luck!

Managers and members are different roles but can be overlap (think CEO and shareholder). The decision matters but you need to work through it based on your personal goals.  As for anonymous - as said above it’s not easy to do.  Think of it this way- if there is litigation and the ask to take a deposition of the entity… who will you send? If there is litigation on the level needing all this protection there will be discovery.  The key is how you operate not just how you set it up.  

Join us at the next "Austin Investors + Landlords" Meetup for a chance to go beyond the basics of real estate from a legal perspective: Case Chronicles: Legal Insights for Landlords & Property Owners

So often I see folks posting about complex LLC structures for "asset protection" but they don't understand the basics of litigation, how claims work, and how those LLCs might help – or hurt- liability protection. I have restarted the Austin Investors + Landlords Meetup to create an event where we talk about being a property owner, not just an investor. 

In our first meeting on Wednesday morning, I will share facts from real premises liability cases and demonstrate the crucial steps that led to claims and potential liability for multiple defendants. (spoiler – it wasn't whether they had a complex LLC structure).

***This is a new location, and we need to give the restaurant a count so they can staff accordingly. Please RSVP go to the Austin Landlord’s page to RSVP so I call them how many people will be there!***