Partnership Question
I have been purchasing properties since January with a silent partner (7 Properties). I have been the one with the credit and the money to invest, his part has been the construction end of the bussines. All is good as far as working together and understanding what each others role is.
My question: He does not have good credit, infact terrible credit. What type of an entity can we form that would protect me and our investments from his credit problems? He has several judgements from a bussines he had a few years back and i am affraid of deal someone attaching to a property that I/he may have an interest.
Would it be smarter to form a corporation and keep him as an employee until he has it all resolved?
Thanks in advance
Who is on title to the property?
I am on Title but I want to set up a company to seperate my personal and bussines dealings. If I set up a corporation and his name was on it, can anyone that has judgements against him attach properties?
Thanks
Ron
Ron,
I could be wrong, but i guess most folks drop the
corporation or llc into a family limited partnership to
avoid the charging order from judgements.
The even more sophisticated use the following.
Land Trust -> LLC or Corp -> family limited partnership.
I have read about it and am considering it myself.
Will let the other folks comment.
Thanks
Krish