E&O Insurance

[Couch Potato]

How is that different from you getting sued, lose everything and still have a deficiency judgement against you? I'm not wiped out, that's the difference.

Supose they sue for ownership of your corporation? :new_all_coholic:

 

[Lee Lansford]

Mike, re: your last post...
If that is your personal strategy, I wish you good luck and that you never get sued!
Lee

 

[moe cohen]

Tax Implications

Mike
In NJ there is minimum corporate tax. In other words, you pay even if you show loss. Also, if you are a sub S corporation , as you know, income and losses are combined with your other income. They dont let you offset gains with losses. For example, if you show losses on real estate and income on appraisal, you can not offset one with the other unless they are under one corporate umbrella.
Btw, Did you set the limited partnership or did you use an attorney?
Moe

 

[DTB]

Mike
In NJ there is minimum corporate tax. In other words, you pay even if you show loss. Also, if you are a sub S corporation , as you know, income and losses are combined with your other income. They dont let you offset gains with losses. For example, if you show losses on real estate and income on appraisal, you can not offset one with the other unless they are under one corporate umbrella.
Btw, Did you set the limited partnership or did you use an attorney?
Moe

Moe,
Use an attorney.

Lee,

I hope I never get sued too, or anyone for that matter. That does not preclude me from having an asset protection plan in place.

Greg,

Follow the chain, FLP owns CORP., general partner (the one in control and also exposed to the potential suit) owns 1% of FLP. Much less exposure of assets, don't you think.

 

[Vicki Maas]

Close the corporation?

Thanks for all of the replies! I guess what I was trying to ask is if I were to get sued (being incorporated) couldn't I close the company and then there wouldn't be anything to sue?

 

[Otis Key]

Thanks for all of the replies! I guess what I was trying to ask is if I were to get sued (being incorporated) couldn't I close the company and then there wouldn't be anything to sue?

Vicki - like the others, I'm not an attorney either, but my attorney told me years ago that the veil of a corporation would only slow down a good attorney. Besides, like someone asked a few pages back, who do the clients hire? You? The corporation? I can almost guarantee that the corporation is not the one approved with lenders; I can almost guarantee that the state does not issue a license to a corporation; I can also point you in the direction of numerous media articles about the heads of corporations being brought down for fraud, or apparent fraud.

 

[Peter LeQuire]

For several years, I operated as a Subchapter S corporation, which, according to my attorney, offered no protection of non-business related assets.

Further, if you think about it, while you can incorporate your business, your status as a licensed/certified appraiser has nothing to do with your business entity: the signature is not "Pete's Appraisals, Inc." it's "Appraiser Pete, License #XYZ." The things for which you can be sued as an appraiser have nothing to do with your business form. It's not the same as running over somebody in the company car.