Missing point of an LLC

[svsv]

If you own RE in an LLC and you personally get sued for a car accident, they can't take that RE. Yet if someone slips and falls on ice in front of that RE they can sue the LLC and get the RE - have I got that right?

 

[Mass_Shyster]

If you own RE in an LLC and you personally get sued for a car accident, they can't take that RE. Yet if someone slips and falls on ice in front of that RE they can sue the LLC and get the RE - have I got that right?

No, you don't have it right.

If you own an LLC and the LLC owns RE, if you get personally sued for a car accident, they can take everything you own, including your LLC.

If someone falls on the LLC's RE and sues the owner (the LLC) they can take everything the LLC owns, which is the RE. The LLC does not own you, nor does the LLC own your car.

 

[FlyingRon]

Your interest in the LLC, if it is a single member, they can take the whole thing.

The "Limited Liability" aspect of the LLC applies primarily to debts. Debts held solely by the LLC do not telegraph through to the members. In any sort of corporation, you're still liable for your own personal acts.

 

[tranquility]

Your interest in the LLC, if it is a single member, they can take the whole thing.

It would depend on the remedies of the state. Some states only allow charging orders.

 

[svsv]

Oh great. It's even more dismal than I thought....

So then membership in an LLC is considered personal property just like the RE itself that it's owning? So then the "word on the street" that you hear all the time about owning your RE in an LLC instead of your own name in case you ever get sued by a crazy is in itself crazy? UGh**************this doesn't sound correct. Ie....I hope it's not correct.

 

[svsv]

Your interest in the LLC, if it is a single member, they can take the whole thing.

The "Limited Liability" aspect of the LLC applies primarily to debts. Debts held solely by the LLC do not telegraph through to the members. In any sort of corporation, you're still liable for your own personal acts.

Ok so then if sued, a judgement is rendered against you. That judgement is a "debt" isn't it? And they look to what you own to pay off the debt, right? So if you own membership of an LLC that owns a house, that can be taken in entirety just as if it was the house itself? Or no?

 

[FlyingRon]

If they can attach your membership in the LLC, the house is theres.

LLCs and other corporate entities are not designed as a shelter to allow you to dodge liability for your actions. It provides an entity that is distinct from any one person. It's not a panacea for placing your assets out of the reach of those you have injured.

 

[HomeGuru]

Oh great. It's even more dismal than I thought....

So then membership in an LLC is considered personal property just like the RE itself that it's owning? So then the "word on the street" that you hear all the time about owning your RE in an LLC instead of your own name in case you ever get sued by a crazy is in itself crazy? UGh**************this doesn't sound correct. Ie....I hope it's not correct.

**A: you are way off.