As far as business goes in the LLC vs S Corp vs leave in personal name question I am probably thinking of going the S Corp route since it is noted on here in some posts that some courts are piercing the LLC protections as they are considering it an alter-ego of the person.
My question...is that possible with an S Corp, especially if you are sole owner of the stock? To add a deeper wrinkle in, as a new S Corp with no history of reputation I expect I will have to personally guarantee the S Corp loan.
First how does that work...am I just a co-signer on the S Corp real property loan or is there some other mechanism that comes into play?
Second, does personally guaranteeing the loan on an S Corp change the legality's of your personal asset's being vulnerable for things that happen on the rental property. The question here is not whether you would be liable for the loan (of course you are...you agreed to be to get the loan), but if there is a liability on the property (...like slip and fall) and insurance does not cover it, can you (as an individual shareholder) be sued?
Were is not for the personally guaranteeing of the loan payback...I don't think I would be asking that question, I just wonder if the personal guarantee creates a connection that the slip and fall party can use to sue you personally.
If you operate as a negligent party, maintain a sham operation, and get sued.. no insurance or corporate cover will help. Get good hazard insurance, follow corporate governance, and don't be negligent. It's not that hard. Operating in your own name, with good insurance, is most likely all you need if you are not negligent.
I have 2 rentals in California: one Single family and one triplex both in California. both properties are under my personal name. I am trying to learn different asset protection strategies using LLC and Land trust. Any suggestions. I am looking for more of DIY approach.
I have following questions
1) In order to move 2 rentals from my personal name to LLC or Land Trust in California? Should I create Quit Claim Deed or Warranty Claim Deed to move properties from personal name to ?
2) Do you think creating 2 different LLC's for each property and then cover as part of Wyoming Land trust.
Or Create Land trust for each rental in California and open another MAIN LAND TRUST in Wyoming and cover 2 California rental land trusts within MAIN LAND TRUST from Wyoming?