Another thing:
If you have a business, put the risk in one corp and the assets in another.
For instance, if you have a restaurant, put the equipment into a holding company, and incorporate the restaurant separately. That way a judgment against the restaurant cannot be levied against the equipment.
Exactly,
Inspect ****** Companies, Inc.
Phoenix **** Inspectors, Inc.
I work part time for the second company, and Inspect ****** Companies has a Truck leased to Phoenix **** Inspectors, Inc.
And ******* ******* owns a House, which leases it to ***** ****** ******** ***.
And.
Etc.
Etc.
Etc.
Best to talk to a good Tax Attorney about Corporations.
Another strategy of mine is to incorporate in different states. It is unlikely the plaintiff’s attorney will be licensed in each state and so the plaintiff will have to hire additional law firms.
I also like to incorporate in Wyoming where there is no state income tax and stockholders don’t have to be revealed, even to the state.
Nick, is it true what I was told that 99% of all HI lawsuits will never make it to court or aModerator and will be settled for 3K or less?
That is true, but putting the settlement costs aside, the defendant still suffers defense costs.
It is much better to be collection proof to begin with… than to be right and willing to pay to prove it.
Reminder: most asset protection strategies must be implemented BEFORE you get sued or expect to be sued. Otherwise, the actions could be ruled to be fraudulent transfers.
that’s true good stuff Nick…
Most inspectors are misguided and obsessed with preparing to win in court. They are nuts and their own attorneys (who get paid to go to court) are often the ones misguiding them.
Nod for Wyoming LLC. That’s what I did. And I do inspections under a DBA in CA.
As far as signing - my lawyer years ago said ALWAYS sign First Name, Last Name, the word “for” then the name of your entity. For instance, John Smith for JS Inspectons. This shows that you are signing on behalf of the corp. and not personally.
Little details in the end, but every bit helps.
I agree with Brian, that’s what I did. It is a pretty simple process, at least here in AZ. You do need to determine if it is the right fit for you and your business.