LLC

Originally Posted By: gjohnson
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Just to say that anyone who spends money to register a LLC online with one of these incorporate your business online is wasting money. Registering a LLC is one of the simplest things… Give me a few hours and I will post basic instructions that will work in almost every state.



Gary (Snicker’s) Johnson - Free NACHOS


The NACHI Foundation


Executive Director


301-591-9895

Originally Posted By: dfrend
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I registered my LLC directly with the state using their website. Actually I printed it out and went in to expidite it so a local competitor icon_wink.gif could not steal the name. Easy as could be.



Daniel R Frend


www.nachifoundation.org


The Home Inspector Store


www.homeinspectorstore.com

Originally Posted By: rpierson
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Unless you have employees, an LLC or a Corporation will not protect you. All Incorporating or forming an LLC does is protect you from your employees actions.


Stay with a sole-proprietor. And get insurance! LOL!


Originally Posted By: Vince Santos
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When I spoke to the attorney he said that an LLC would be the best way to go for me. He said an LLC protects you from being sued, well not being sued, but from being successfully sued. This seems unlikely to me too. Randy, what is a sole-proprietor and is that also easy to form? I know insurance is another thing some HI’s use. I have seen mixed posts relating to E&O. Some say it’s a waste of money and others say it’s a necessary expense. I look at it like car insurance, you hate to pay it but are happy you did when you need it.


BTW
Don't quit your day job relates to a new inspector not making money when they start. I am trying to move into this industry but still have my full time job. Also, being a NACHI member does not constitute a right to name calling making it out of place.


--
Desire is half of life, indifference is half of death.
--Kahlil Gibran

Originally Posted By: dfrend
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You are wrong Randy. An LLC will protect an individual from having personal assets seized. Vince, unless Randy is an attorney in your area, follow your attorney’s advice. He knows what the law is.



Daniel R Frend


www.nachifoundation.org


The Home Inspector Store


www.homeinspectorstore.com

Originally Posted By: Vince Santos
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Also from what I understand. If you form an LLC you can only be sued for the amount of money invested in your business.



Desire is half of life, indifference is half of death.


–Kahlil Gibran

Originally Posted By: dfrend
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Basically, with an LLC, your company gets sued, not you. They may bankrupt your business, but your house will be protected. There are exceptions and there are ways around everything, but follow your attorney. My attorney is an LLC himself. Different situations require different advice.



Daniel R Frend


www.nachifoundation.org


The Home Inspector Store


www.homeinspectorstore.com

Originally Posted By: gjohnson
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Alirighty then,



Here is my two cents. And please I teach Business at a local college, and do consulting to new businesses.

First, I don't care what kind of business it is. I tell people to never ever go with a sole propieter or partnership. All you are doing is opening the door to a lawsuit that will find you in the hole so fast you won't be able see straight.

LLC, act as a in between from S.P and Partnerships to Corporations.

Taken from nolo.com ******
Like owners of partnerships or sole proprietorships, LLC owners report business profits or losses on their personal income tax returns; the LLC itself is not a separate taxable entity.

Like a corporation, however, all LLC owners are protected from personal liability for business debts and claims -- a feature known as "limited liability." This means that if the business owes money or faces a lawsuit for some other reason, only the assets of the business itself are at risk. Creditors normally can't reach the personal assets of the LLC owners, such as a house or car. (Both LLC owners and corporate shareholders can lose this protection by acting illegally, unethically or irresponsibly. ****

You need to pay attention to the last line in quotes. What this means that is if you don't run your LLC like one, then you can be attacked a in a lawstuit. Always keep seperate books, and don't do things like pay your mortgage out of the company account.


--
Gary (Snicker's) Johnson - Free NACHOS
The NACHI Foundation
Executive Director

301-591-9895

Originally Posted By: Vince Santos
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Great advice!


I actually called the bank yesterday to discuss my opening a business account so I can keep that seperate form my personal checking account. This just seems to make sense to me to keep it all seperate. The bank said I had to have a business name started before I can open up the account, which also makes sense. As soon as I form the LLC I will start to use that account for all my business needs like purchasing equipment etc.


I have also read that it is difficult to change from an LLC later on if you should decide to hire several people to work for you.



Desire is half of life, indifference is half of death.


–Kahlil Gibran

Originally Posted By: kmcmahon
This post was automatically imported from our archived forum.



gjohnson wrote:
Just to say that anyone who spends money to register a LLC online with one of these incorporate your business online is wasting money. Registering a LLC is one of the simplest things... Give me a few hours and I will post basic instructions that will work in almost every state.


Mine was strait with the state....no middleman. It was more expensive to mail it in....


--
Wisconsin Home Inspection, ABC Home Inspection LLC

Search the directory for a Wisconsin Home Inspector

Originally Posted By: pdacey
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gjohnson wrote:
(Both LLC owners and corporate shareholders can lose this protection by acting illegally, unethically or irresponsibly. ****

You need to pay attention to the last line in quotes. What this means that is if you don't run your LLC like one, then you can be attacked a in a lawstuit. Always keep seperate books, and don't do things like pay your mortgage out of the company account.


This is where I get hung up on all of this. In a state like TX that requires a license to be an HI it can be very easy for someone to circumvent the protection of an LLC. All HIs in TX are required, by law, to list our own name along with our assumed business name and our license number on anything that can be considered advertising. Even our reports. So if I have to put "Patrick Dacey TREC Lic.# 6636" on every piece of paper that I distribute, it can be argued very strongly that I am not acting as or like an LLC.


--
Slainte!

Patrick Dacey
swi@satx.rr.com
TREC # 6636
www.southwestinspections.com

Originally Posted By: gjohnson
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Vince,



LLC can have people working for them. There is no need to change anything. My youngest brother has a company that is an LLC and employees about 15 people. All you have to do then is make sure you are doing the payroll taxes and social security and every other thing that comes with employees.


--
Gary (Snicker's) Johnson - Free NACHOS
The NACHI Foundation
Executive Director

301-591-9895

Originally Posted By: pdacey
This post was automatically imported from our archived forum.



gjohnson wrote:
I teach Business at a local college, and do consulting to new businesses.


Plus the foundation, the convention and your HI business.... do you ever sleep? You must be the epitome of a type "A". ![nachi_sarcasm.gif](upload://6HQh6KbNiD73gqTNQInjrR2zeJw.gif)


--
Slainte!

Patrick Dacey
swi@satx.rr.com
TREC # 6636
www.southwestinspections.com

Originally Posted By: gjohnson
This post was automatically imported from our archived forum.



don’t forget the other things I do… Starting a training school, and have a family and play golf once or twice a week…



Gary (Snicker’s) Johnson - Free NACHOS


The NACHI Foundation


Executive Director


301-591-9895

Originally Posted By: gjohnson
This post was automatically imported from our archived forum.



For anyone that has questions on LLCs here is a good source of information




http://www.nolo.com/lawcenter/ency/category.cfm/catID/19B45DBF-E85F-4A3D-950E3E07E32851A7#BAAE1B67-F54A-41B4-91943A51F56C3F79


--
Gary (Snicker's) Johnson - Free NACHOS
The NACHI Foundation
Executive Director

301-591-9895

Originally Posted By: rpierson
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I do know Business law, I have an MBA in Business, a Bachelors in Accounting, Owned a McDonalds Franchise for ten years!


I'm not going to get into a pissing contest with you! If you don't understand business 101, work for someone else.

If you know how to run a business, even a sole-proprietor keeps separate bank accounts! No big!

If someone wants to sue you, an LLC or a Corp. They will! Bottom line!

Like I said, it only protects you from your employees actions! That is it in a nutshell!

Been there, done that!

Take it or leave it!

WHATEVER Vince! For someone who thinks so little of NACHI standards, 37 posts sure is alot time on a board! You keep your organization comments to yourself and I won't call you out anymore!


Originally Posted By: dfrend
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I can only say I feel for you when you get sued.



Daniel R Frend


www.nachifoundation.org


The Home Inspector Store


www.homeinspectorstore.com

Originally Posted By: jburkeson
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pdacey wrote:
This is where I get hung up on all of this. In a state like TX that requires a license to be an HI it can be very easy for someone to circumvent the protection of an LLC. All HIs in TX are required, by law, to list our own name along with our assumed business name and our license number on anything that can be considered advertising. Even our reports. So if I have to put "Patrick Dacey TREC Lic.# 6636" on every piece of paper that I distribute, it can be argued very strongly that I am not acting as or like an LLC.


Patrick,

Correct me if I am wrong, here in Florida I am an LLC, but once licensing comes to Florida all the current LLC Home Inspectors will have to reorganize into PLC (Professional Limited Liability Company) I will most just create a new Professional Corp and have my current corporation hold it. Does that make sense?


--
Joseph Burkeson, RPI (Hooperette)

?Anyone who has proclaimed violence his method inexorably must choose lying as his principle.?
~ Aleksandr Solzhenitsyn

Originally Posted By: gjohnson
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Joe,



I am not 100% sure maybe our resident MBA and ex Mc-Donalds owner can answer that. But I would say that there really is no reason to keep the current LLC, unless have a PLC prevents you from using the name that you are currently using.


I haven't had much contact with them. I do know that LLC were created by states mainly as a replacement to S Corporations. I just spend about an hour reading case law on LLCs and being sued and as long as the companies were acting as true LLCs and not doing anything fradulent, the LLC status held up and their personal assets were protected.

As a previous caller said, if someone wants to sue you, LLC or Corp they will. That is true. I mean I can sue anybody for any reason that I can think off. The question is will it hold up in court and current caselaw. One of the major problems with our legal system is that it is based mostly on precedents. Once a court rules on a decision, the precedent is set and laywers argue mostly that.


To answer Patrick questions, I would think that since the state requires you to put your name along with everything. Then you are still acting as a LLC. All that means is that you are running your business through you LLC. But again, I could be wrong on that. The way that Texas does the licensing could be a problem. It is a shame but I would like to see a court case on it and how well the LLCs hold up.

I had a great conversation with NACHI laywer Joe Ferry on the way to the Long Island Chapter meeting. And he confirmed for me that LLCs and Corporations do protect your assets as long as you are acting as a LLC and a Corporation.

I guess since we are rattling off qualifications....

BS in Computer Networking
MBA in Management
MS in Finance

and half a doctorate in Business. I also have a book coming out in September called "Small Business Operations". All that before I was 28...what can I say I dont' like to sleep....


--
Gary (Snicker's) Johnson - Free NACHOS
The NACHI Foundation
Executive Director

301-591-9895

Originally Posted By: Vince Santos
This post was automatically imported from our archived forum.



Randy Pierson


You can call me out till your blue in the face!

Your opinion now has about as much weight as a feather to me.
You sound like you have alot to say to me.
My number is 734-748-9584


--
Desire is half of life, indifference is half of death.
--Kahlil Gibran