You should also have an umbrella insurance policy on your LLC.The JV does not offer anyone asset-protection, however, since you can record a memorandum or notice, you can notify any would be claimants that you have a vested interest in the assets.

Title companies just don’t work with these types of people, because in the end, we are the ones holding the bag when the investor goes out of business or to jail and somebody needs to pay/reimburse the claimant.

LLC = Limited Liability Corporation.Basically means that any creditor or claimant is limited to the assets of the LLC.If you want to put everything you have at risk in such a case, then I wouldn't do a LLC.

Akhil,Although there have been rules of thumb mentioned in the past, Liability losses and Lawsuits depend more on what occurred and what the claimants Attorney thinks they can get.   

Realize they serve 2 diff purposes:1) LLC is to limit a claimants recourse to your assets and passes thru income to the end entity2) S-Corps are the end entity and are used to reduce taxes (like FICA) and W-2 amounts by providing more generous benes (like retirement contributions) to "employees" as long as all are treated equally.DISCLOSURE - AM NOT A CPA OR TAX PROFESSIONAL.

A claimant may not prevail, but who wants their funds locked down pending a ruling?

So someone somewhere will need to sign personally.The idea of LLCs are to limit recourse of any claimant to what's in the LLC.

Start with one property at a time.Use the PETIO method to segment those with merit (search term on this site for explanation).Use online and offline skip tracing methods to locate missing owners, heirs, creditors and claimants.

This is because there may be multiple heirs, other claimants or creditor claims that could eat away or eliminate equity.In my state, CA, DHCS (Medi-Cal) commonly takes big chunks and occasionally all of remaining equity.

Otherwise, a potential claimant can "pierce" the entity and go to the member(s).