Real Estate Investor · Desoto, TX · Member since 2013 · 560 posts · 528 votes
My RE attorney sets up LLCs for asset protection. My wife would like to set up a single member LLC for her private practice as a marriage and family therapist. Although she has malpractice insurance and is highly ethical, she is always concerned about the possibility of getting sued. In regards to the basics of setting up the entity, does it really matter if the attorney's expertise is RE for the purpose of setting up the entity? On the surface, it seems like if the attorney can set up an LLC for RE asset protection, it would be the same as setting up an LLC for a Non-RE business. I realize the taxing choice would be different but our CPA is advising on that. I am strictly talking about the basic task of setting up a single member LLC and explaining what we need to do to "stay legal" as an entity and not have it disregarded. Would the RE Attorney be appropriate enough? I assume most attorney's who set up LLCs don't specialize in LLCs for only one line of business.
Contractor · Maitland, FL · Member since 2015 · 24 posts · 20 votes
10y
Daren H. There are a couple of things to consider... First anyone can set up an LLC sans an attorney. (I definitely don't advise it) but it's an easy process with the state SOS...
the important reason to use an attorney are regarding the liability that can be imputed by virtue of your wife's business activities and how formally and properly the entity is run. For example, ensuring proper funding of the entity, annual maintenance items and filings and, in some cases, keeping licenses active. Otherwise, a potential claimant can "pierce" the entity and go to the member(s). Another important aspect to remember is in some states (most) a successful judgment against a member can result in a recovery related to a single member LLC. (Re: a charging order) So look at this from all sides.
Personally, I think an asset protection lawyer is better suited to advise you guys. Good luck.
Btw, I am an attorney, but not in TX and this post shouldn't be construed as legal advice in any form. Thx.