Trust or not to Trust
I'm buying an RV that I will fulltime in. I went to my attorney and talked to him about a trust. I wanted the trust for asset protection in case I'm sued. He didn't think I needed one for that. I g...
Forum Discussion
sflabrkr wrote:
Here's my problem, I'm an A/C tech and we're retiring in about 2 years.
If I'm working on your 10th floor condo and I break a water pipe you could have $50,000,000 in damage till I shut it off.
I only carry $1,000,000 insurance.
I would not want to lose my home also.
Operate your business as an LLC and not as a sole proprietorship. LLC=limited liability company. This creates an extra layer of protection because a suite against the company is limited to the assets of the company. Typically, someone suing your company will also sue you, but they have the burden of proof to show that you as an individual are liable and not the LLC. That usually means criminally liable or grossly negligent. The LLC creates an extra hurdle for them to get to your personal assets. You have to operate the LLC correctly for that barrier to exist (separate accounting, checking accounts, properly handling your LLC paperwork each year, etc).
Another layer of protection would be to add a personal umbrella insurance policy that would assist if you got sued individually.
