All Forum Posts by: Saul Escobar

I've heard of these things happening where the tenants move in and then force you to evict them.  Thought it was a Miami thing...

The shotgun approach is not exactly ethical unless you have a legitimate reason for believing in the guilt of each of the persons/entities included in the lawsuit. Regardless, an LLC does provide some asset and liability protection.

You do not necessarily need a lawyer to form an LLC, but I would suggest consulting with one to discuss why you would need one.The value of counsel is not in creating the entity itself, it is in creating the scheme to achieve what it is you want to achieve. To that end, the three most important reasons you may want to create an entity are liability protection, asset protection, and taxation.

Adrian’s article discussed some of the issues involved with the liability aspect of an entity. Namely, you can still be sued for your individual negligence and you can conduct your business in a way that would lead to the corporate veil being pierced.

In terms of asset protection, an LLC may not be the best option if it is a single member LLC. Many states have allowed the creditors of the single member to go after the assets of the LLC itself. This is different from what happens where a multi-member LLC is involved. In such cases the creditor can only go after the member's distributional interest and not the LLC's property.

As far as tax purposes, it is my understanding that the IRS will treat a single member LLC as a sole proprietorship. My suggestion is to consult a professional and discuss these three factors with him or her. Then decide which entity best suits your needs and draft the appropriate documents.

It may be too late for this reply to help you, but I'll contribute for the benefit of anyone who encounters this problem in the future.

In Florida, and I would presume all other jurisdictions, you do not need title in order to have an insurable interest under an insurance policy.  The buyer of a property, or an option to buy the property, may have an insurable interest in the property.

The key thing to look for is the date of loss.  In this instance, based on your comment, it looks like the date of loss was prior to you having a possible insurable interest in the property. 

Hope this helps.

Some communities of townhouses in South Florida function like single family homes, so if that is the case you should go with the basic homeowners' insurance.

However, if there is a master policy, you may go with the HO6 policy for unit owners.  This policy is used to fill the gaps between the coverage you need and the master insurance policy of the condominium. It covers damage to personal property within the condominium as well as personal liabilities.  The policy should be modified to supplement the master insurance policy.

As Mr. Brooks said, find out what the HOA covers - then you'd know what you need.