Posted by Kyle-VA on January 07, 2003 at 13:01:06:
Chris,
This is a very common question among those starting out doing Lonnie Deals. I know that I asked the same question. Here’s what I recommend, which was the way I was directed by other contributors, and it worked out great. Do a search in Archives on “LLC vs Corp”, or just “LLC”, “Corp”, you get the picture. I’m sure you’ll get more hits than you have time to read in one sitting. You can also do a search in the Legal forum, I’m sure the question has been posed there as well.
I am in Southeast Michigan and going to begin doing Lonnie Deals however I have a couple questions. First, is it necessary to get an LLC or other corporate structure, or is it simply enough to register your business name with the state or county out of which you operate. What are the advantages of each. Also, what would be a good amount of money to begin the business with? Right now I’m trying to save up enough to get started.
We are just getting started in the MH business-Lonnie Deals and have studied LLC. I was told in VA you can sell MH and not need a LLC. This is confusing. Protection for our home and cars is important and we do don’t want to be sued for what we have gained.
What is the best thing to do? we are in the same bost!
Posted by Ernest Tew on January 07, 2003 at 16:18:38:
Chris, while there is no requirement to have a corporation or LLC to do business, either one could provide some protection from liability exposure. In most instances, a limited-liability company would be a better choice. When a corporation gets sued, the officers and directors are usually joined in the suit and it isn’t too dificult to “pierce the corporate veil” of most corporations.
As long as you don’t have any assets that would be attractive to the preditors (usually, things that can be converted to cash), you don’t have to worry too much about liability in the event of a lawsuit.
However, by the time you begin to accumulate cash, income, or other attractive assets you should have some form of asset protection.