Regarding liability, my non-lawyer impression is that you cannot avoid it if you yourself are the cause of the damages. Hit someone, cause someone harm, start a fire that damages the RV next to you, etc. and you are still liable.
However, if you hire someone else to do work and the injury or damages occur as a result of what someone else does (e.g. a mechanic, the guy detailing your rig, a manufacturer's defect in the stove, whatever) they your liability is limited to the assets of the LLC - your personal assets are otherwise protected.
All this talk about liability is beside the point. Most RV LLC's are domiciled in Montana. The reason for this is to avoid taxes. If limitation of liability were the goal, why go to Montana, you could do it in your own state. People do Montana LLC's to avoid their home state taxes, and this is the area where they go afoul of the law in many cases.
Marc, Boca Raton FL
2003 Beaver Monterey 40' triple slide
Blue Ox TruCenter
Acura MDX toad
Unified Tow Brake
Pressure Pro Tire Monitor
Garmin 2610 GPS
Datastorm D3/7000
Sirius Radio
Tivo on board
SPRey wrote: Brobox, actually I think we are saying the same thing. Your professionals established your LLC for a business purpose--called "estate planning" which allowed them to establish your "asset protection" mousetrap--so it does work for you. You really don't own your assets right now--even though some of them wind up on your Form 1040.
Fact is...compared to "corporate" or "partnership" entities...very little "case law" exist involving LLCs regarding "intra" and "inter-state" legal matters. There is no question about the trend regarding "sham transactions" though. Example--who knows what a judge from Ohio (say--you had an accident while visiting the "Rock n Roll Hall of Fame) would rule regarding an LLC formed in Florida (place you selected to have your LLC) with the LLC sole asset (RV) was in California (your vacationing at Yosemite)...but licensed in Texas (your resident state). It hurts the brain thinking about it...but that is more real world.
Brobox...you are very smart and securing professionals to help you with your "mousetrap". My point was--in of them selves--LLCs should not be viewed as a "poor man's insurance"--cuz "case law" does not support that conclusion.
Cheers!
BINGO! You are correct. It all involves estate planning. The Montana LLC fit right in with our estate panning and the cost of the Attorney's was less the sales tax on the MH would have been. Now we are covered for life on all of our assets. We have already been issued a Florida Title to our LLC, tax free and totally legal. Yes estate planning does work, yet so few people take advantage of it.
Thank you for pointing that out.
Chuck
02 Travel Supreme, 2 street side slides
02 Jeep Liberty Toad
BINGO! You are correct. It all involves estate planning. The Montana LLC fit right in with our estate panning and the cost of the Attorney's was less the sales tax on the MH would have been. Now we are covered for life on all of our assets. We have already been issued a Florida Title to our LLC, tax free and totally legal. Yes estate planning does work, yet so few people take advantage of it.
My 2 cents!! If you believe the above you are in for a surprise! Someone posted what the LL is in a LLC. Someone is listed on that MT. LLC as an officer of that Company with the Secretary of State of Montana. A court order will reveal that Info. I think you would have a terrible time explaining to a court in a personal injury and/or a wrongful death the Purpose of an LLC in MT when your trust either revocable and/or irrevocable is in another state and MT not being your resident state. There also has to be a trustee shown on that trust. Don't think that it cannot be opened. A trustee has the sole discretion over an irrevocable trust. If it is a revocable trust and you are alive it is not much better than a will. If what you say was true everyone in the US would have a Trust and an LLC then no body would be liable, Then we could do away the Judicial system.
I am ready for the flaming everyone tell me about case law
* This post was
edited 07/20/08 09:31pm by Tenn Stud *
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