I don’t plan on ever going to foreclosure, but I want to purchase some investment properties with 0% chance of my personal assets being at risk if something when bad. Or is there another type of corporation that would fully shield me financially?
I am in Colorado if that helps anyone answer.
Jamie
Comments
I think the LL in LLC means your limited liability stays with the company. But then again, I’m no lawyer.
This is why attornies make so much money.
You are all ready shielded in the State of California.
An LLC company will shield you in most cases assuming that on loan documents you yourself are not listed as co-signer or otherwise specified as a responsible party, other than acting on behalf of the LLC.
You can likely be held liable if you engage in a sort of blatant misconduct as an officer of the LLC, but a simple economic downturn or such would not classify. You would need to be shown to be acting in a knowingly fraudulent or deceitful way.
I however recommend that you consult with a lawyer in your state since they will be able to give you advice customer tailored to whatever financial transactions you will be attempting. This may cost you a couple of hundred dollars, but if problems do arise you will be able to sleep easy at night. This is important because any advice you receive here will be wrong depending on the state, and depending on the purchase contracts, or how the business operates.
It can also be difficult for a company with no history of credit, and minimal assets to receive buisness loan for the purchase of property or other things at competative rates.
Good Luck
