Business questions

[Citydude]

This is a huge red flag. I suggest fixing the underlying problem immediately, which is the willingness to cheat, etc. You seem to have all the necessary ingredients to be very successful. If you keep on the path of cutting corners and not operating professionally it will continue to expand and eventually explode. I've seen it happen over and over with others.

My suggestion is to spend some money and engage a good local attorney and CPA for advice. People here offer good help but they don't know all of your circumstances, probably also many are not familiar with specific laws in your state. So what worked for them in their state might be bad advice for you in your state. A good local attorney and CPA will get you oriented in the best possible ways, in compliance with laws, etc. Not to mention also a good insurance policy. Yes, they are expensive, but not in the long run. Your entire future is threatened if the "underground economy" continues.

Best advice ^^^^

When I owned my llc business I had three advisors. In order of importance, my insurance agent, lawyer and CPA.

 

[plowhog]

Good luck to you! My experience is that no matter what I paid a CPA, her advice resulted in me earning or retaining far more money than I spent to get the advice. Hmm wish I could say that about the attorneys I have used ....

 

[Citydude]

My lawyer is my wife so I had to put her ahead of my CPA :thumbsup:

 

[randy41]

Just curious -- why you would want to do so? It seems to me that asset ownership by the LLC exposes those assets to liability and defeats one of the purposes of forming the LLC in the first place.

I don't know if it is still the case, but there used to be tax advantages to leasing your personal assets to your LLC.

Steve

ownership of the assets by the llc protects the individual from liabilities associated with those assets.

 

[plowhog]

ownership of the assets by the llc protects the individual from liabilities associated with those assets.

Yes and no. If you own a residential rental property and someone slips and falls, your liability (in my state) is limited to the assets of the LLC that owns the property. But if you personally are at that property mowing the lawn and a rock is thrown that kills or injures someone, YOU are getting sued and will lose along with the LLC. Since he does hands-on horse training, a blanket statement that forming an LLC shields him from liability probably isn't accurate. Which is why local professional advice might be good. Not meaning to dispute your post, but these things can get tricky depending on circumstances ....

 

[randy41]

Yes and no. If you own a residential rental property and someone slips and falls, your liability (in my state) is limited to the assets of the LLC that owns the property. But if you personally are at that property mowing the lawn and a rock is thrown that kills or injures someone, YOU are getting sued and will lose along with the LLC. Since he does hands-on horse training, a blanket statement that forming an LLC shields him from liability probably isn't accurate. Which is why local professional advice might be good. Not meaning to dispute your post, but these things can get tricky depending on circumstances ....

but if the llc employee is operating the llc owned mower.............

 

[sseelhoff]

Yes and no. If you own a residential rental property and someone slips and falls, your liability (in my state) is limited to the assets of the LLC that owns the property. But if you personally are at that property mowing the lawn and a rock is thrown that kills or injures someone, YOU are getting sued and will lose along with the LLC. Since he does hands-on horse training, a blanket statement that forming an LLC shields him from liability probably isn't accurate. Which is why local professional advice might be good. Not meaning to dispute your post, but these things can get tricky depending on circumstances ....

It can get very complex in terms of liability, especially if you are using the entity as an alter ego to avoid personal liability. Generally, the individual can be personally responsible even if performing work in the course and scope of their employment. If the entity has coverage, insurance kicks in to protect the employee.

 

[TheMan419]

but if the llc employee is operating the llc owned mower.............

Yes the llc AND equipment operator will get sued.

 

[goeduck]

The world has gone crazy. I stepped in some chewing gum, I wonder who I can sue.

 

[dragoneggs]

The world has gone crazy. I stepped in some chewing gum, I wonder who I can sue.

Sue them all... one might stick. :laughing:

Wrigley's, Dentyne, Double Double, oh and Big Daddy.. are they still around? I used to buy those foot long sticks by the case at a nickel each and sell at my middle school for a dime. I actually was netting some coin! That is until the Vice Principle shut me down. Lasted two plus years but I guess I was getting famous.