Lawsuit

damelect profile photo

If I have an LLC with properties in it and I get sued, Will the possibility exist that I may lose the properties in the LLC??

Thanks.

Comments(6)

  • InActive_Account20th June, 2006

    This is America. Anything can happen. Give us specifics if you want a better response.

  • mtnwizard20th June, 2006

    The LLC will protect your personal assets but your real property remains partitionable and subject to liens and encumbrances. I use a land trust to protect the real property and take title in the LLC. Good luck.

    Da Wiz
    a proud non-lawyer

  • fbprop21st June, 2006

    I am not a lawyer nor am I able to offer you legal advice, that said your first move should be to consult (and retain) competent counsel...

    I have 2 properties, 1 personal and 1 investment (In LLC). if someone decided to file suit, would I also be liable since the vehicle is in my name? and if so, seeing that my investment prop is in an LLC, could it also be attacked?

    Typically anyone and everyone that could be named will be named ... you as owner of the vehicle would be second (only to the driver)....

    As for your LLC, what ultimately happens depends upon state law in the state it was formed and on your operating agreement.... if all has been set up properly by an asset protection attorney, you may or may not be ok.... so much depends on the state and agreement that I would not want to speculate.....

  • NewKidInTown321st June, 2006

    Asset protection takes two paths.

    The first is when your LLC is sued, then only the assets held by the LLC are at risk. Your personal assets should be shielded from liability.

    The second path is when you are sued personally for something unrelated to your business activity. In this instance everything you own in your personal name is at risk. Generally speaking, the assets owned by your LLC are protected from exposure.

  • NewKidInTown324th June, 2006

    I think you posted this question in the wrong forum. I suspect you will get a better response in the Legal Forum.

  • NewKidInTown324th June, 2006

    Your question is in the correct forum now. You had originally posted this question in the Tax Strategies Forum. A moderator moved your question to the Legal Forum.

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