All Forum Posts by: Mitchell Zoll

Each state is different, which is why it is best to discuss your situation with your lawyer. In Texas, LLC's strong protections are in statute and case law. But setting up an LLC isn't enough. It's the way you operate your LLC that can provide a Plaintiff's lawyer with leverage. Simply filing the state records isn't enough.

Yes - but you are correct to continue to ask questions.  Lawsuits rarely get to the idea of selling off assets to satisfy a judgment. Following well drafted contracts and insurance for the unexpected provide the first line of protection.

Have you asked your lawyer to explain "why" they recommend this for your business?  Each situation is unique, but make sure you understand why it matters to you before you add complexity to your business management.  "For liability protection" isn't enough  - all LLCs provide separation from your personal assets.  Make sure you understand how a claim works, how contracts work, and how a "judgement" could happen before you worry about how many eggs you have per basket. 

Agree with David, the Franchise reports are a one-page report. You can do it online in 2 min! Don't let that be a reason to avoid an LLC. Use the podcasts to determine the questions you want to ask, then talk to a lawyer and a CPA about your specific situation. The reason the advice is mixed is because it is not relevant to your situation.

Contact Nate Cace of Cace Law. He's a great attorney and knows property law.  I often refer clients in San Antonio area his way. 

Contact Ryan Kelly for help. He has provided a lot of guidance on this site and helped me find a great investment property!  https://www.biggerpockets.com/...

When you have truly decided to operate a business. 

Too many investors search out an LLC "to protect their assets" without understanding what is necessary run the business and maintain corporate formalities. Folks set up an LLC from an online company, sign a few contracts under the LLC name, but then fail to draft contracts that they understand or set up business practices they will actually follow. Within a year the contracts are a mess, the records haven't been maintained, and the state has terminated the entity for failing to file the most basic forms.

Insurance is a great vehicle to protect assets if that is a concern and there is no reason why you can't own real estate in your personal name. 

But you'll know its time to set up an LLC when you are ready to do all of the things that are actually involved in running a business.

The articles you are reading on google normally skip a lot of important factors to get to the benefits of a Series LLC. Read the statute that establishes the Series LLC and make sure you understand the obligations. You might be saving $308.10 (the Texas LLC filing fee) but spending a lot more on management and record keeping. Best to have a discussion with someone who understands what YOU are trying to achieve, and then can discuss the LLC options in that context.

Your lease should say that all requests/agreements should be in writing signed by Landlord (you) and tenant.  Legal or not... (and there are issues with agency here) her concessions may cause bad feelings when you have to tell the tenant she wasn't "authorized" to agree to something.  Instead make it a business rule (for all of you) that nothing is agreed unless in writing. If you tell her that rule it will help cut down on parking lot agreements. 

Get your information from the City, not the seller.  Unfortunately my experience is that enforcement might not care what other COA departments say.  They are all silos of authority.  But, if the permit department can note the work does not need inspection and the permit is complete (closed, void, etc), then it shouldn't ever go to enforcement. If there are contractors associated with the permits, try to contact them for their files and take that information with you to the City to get the permits updated.