Revocable Trust vs. LLC vs. Corp, etc.

[Creekside1]

What is the name of your state? CA

My husband and I both operate separate businesses out of the home. We each have a business license registered to our home address. I know that if we are sued for "negligence" that it is hard to be protected from just about anything... however, we want at least some protection and were told that a Revocable Trust would be a quick andleast expensive way to go at first, and approach a LLC or Corp down the road.

Will the Revocable Trust help?

I'm not understanding how any of these help if the actual business name is tied to our names or home address?

Thanks in advance for your input!What is the name of your state?

 

[JoshDom1898]

Why not have the trust own the LLC?

 

[Creekside1]

We don't have either yet and just to get somethhing started was suggested to just do the trust. Then as we have money available to form the LLC and the Corp, at least the trust is in place initially?

 

[seniorjudge]

You also need to make sure that each of your entities (including you as individuals) has about a $2 million umbrella liability insurance policy.


FULL DISCLOSURE: I know what I'm talking about.

 

[JoshDom1898]

If it was me, I'd hire an attorney to draft the revocable living trust and associated documents.

Hire a corporate/business attorney to file the LLC (with the trust being the sole member)with the governmental agency necessary and draft the Operating Agreement (you could do this yourself but really what you're paying for is the Operating Agreement).

Get your tax Id from the IRS after your LLC is formed.

Open a bank account in the name of your entity.

Get general liability insurance for your entity.

Make money.

I would say all of this should not cost you more than $3,000.00 if you get a decently priced attorney. But hey, you should still read the trust and Operating agreement to make sure you understand it.