Posted by phil on January 06, 2003 at 12:30:58:
Yea, we did. But we knew this stuff… Always have insurance, and either and LLC, or C or S corp. IE, never do business in your personal name!
Lessons from the School of Hard Knocks - Posted by Elias
Posted by Elias on January 06, 2003 at 09:21:39:
Happy New Year and I’m starting mine off filing bankruptcy. I made a few mistakes in real estate and they’ve come back to haunt me.
Mistake 1: I owned the property in my own name, not an LLC.
Mistake 2: Because it was a condo, I didn’t need insurance to get the mortgage, other than the fire insurance provided by the homeowners association. Accordingly, I didn’t buy insurance.
Mistake 3: I sued someone and let them settle without getting them to agree to indemnify me against other claims against me for their negligence.
The combination of these three elements resulted in a judgement against me personally for more than I can pay due to the screw-ups of someone else and their sewer pipe. The $15 a month I saved by not having insurance definitely was NOT worth it.
Hope you learn from my experiences.
Why not personal name? - Posted by John_CT
Posted by John_CT on January 07, 2003 at 15:52:51:
I know that an LLC provides some seperation but you are still the one on the hook financially and in terms of liabiltiy, correct?
Re: Lessons from the School of Hard Knocks - Posted by Mike G
Posted by Mike G on January 06, 2003 at 23:31:55:
Sorry to hear about your misfortune, but thanks for sharing. The more people share their mistakes, hopefully the fewer we’ll all make.
Good luck going forward!