Becoming an LLC

[Brian K. Smith]

but even if your llc...and YOU do the inspection the llc means nothing...they will still personal take you to court along with the llc.....get it? they may get noting from the llc....may be a ladder and a few tools...however your personal assets will still be on the hook…..this is how I read it?

[Bobby G. Michael]

Yep, get an accountant.

[Jeff Tatlock]

Originally Posted by gromicko

Most attorneys don't know squat about asset protection, a subject that is very important to inspectors. Most attorneys are too hung up on preparing to win a lawsuit instead of preparing to lose one. Too many inspectors end up paying through the nose to beat a lawsuit. What a waste.

I'd much rather pay nearly nothing and keep my money. I take certain strategic actions to cause the plaintiffs to think they about to hit the jackpot, which in turn causes the plaintiff to spend more of their money trying to win. Then, after enticing the plaintiffs to pay to fight through every roadblock I put up, I eventually permit the plaintiffs to win the judgment. Then I take more strategic actions to cause the plaintiff to think they are about to collect the jackpot, which in turn causes the plaintiff to spend even more money trying to collect. After years of this, when they finally get to the finish line, exhausted, and often penniless, it is only then that I find it in my heart to inform them that all the money they spent is all for not, because I'm totally collection proof. I know, I'm evil .

One way to lose a small fortune... is to sue me and win.
One way to lose a large fortune... is to sue me and win, then try to collect.

Nick,

Would you be interested in elaborating further, or perhaps have some reference material. I understand if you want to keep your strategies private, however.

Jeff Tatlock
BEACHSIDE Home Inspection
Serving Brevard County FL. Areas include Cape Canaveral, Merritt Island, Cocoa Beach, Satellite Beach, Indian Harbour Beach, Indialantic, Melbourne Beach, Viera, Melbourne.
www.beachsideinspection.com/why_beachside

[vsanders]

Good info for me, thanks everyone

[Nick Gromicko]

Jeff writes:

Nick,

Would you be interested in elaborating further, or perhaps have some reference material. I understand if you want to keep your strategies private, however

No big secret strategy. Basically, I don't own any assets (in my personal name) and never will again. I see no reason to ever title anything in your own name or use a ball point pen.

No one can be judgment proof unless you give up your U.S. citizenship (which I won't do). But you can be, like me, 100% collection proof.

I sleep like a baby at night and couldn't care less if anyone sues me. I love watching them waste their time and money.

[Nick Gromicko]

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.

[Dale Duffy]

Originally Posted by gromicko

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.

[Nick Gromicko]

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.

[Nick Gromicko]

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.

[lflores]

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?

[Nick Gromicko]

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.

[lflores]

that's true good stuff Nick..

[Nick Gromicko]

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.

[Darin Redding]

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.

[Mary Ann Chiquete]

Originally Posted by bkelly2

Form a LLC yourself and save all the money....

http://www.sos.ca.gov/business/be/faqs.htm

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.