4 ms·
It's really going to depend on the project and your exposure to litigation combined with your own net worth. If you can get sued and you own a home there's a ri
by mikeryan 10y ago
It's really going to depend on the project and your exposure to litigation combined with your own net worth. If you can get sued and you own a home there's a risk where a corporate shield might be a benefit
The truth is if you're just living paycheck to paycheck it's pretty unlikely you'll get sued there's nothing to win. Blood from a stone and all that.
The key to assessing risk is figuring out what kind of damages your client can incur which is what they can recover via a suit.
One other note LLCs are not the preferred structure for taking investment S and C corps are better for this.
- davidgh 10y agoI would submit that LLCs are better than S Corps for investments. With an S Corp each shareholder must be a human resident of the United States. Any sophisticated investor will not personally take ownership of shares when making an investment but will do it via some type of business structure (i.e. a business that the investor owns or controls will make the investment). Since each shareholder of an S Corp must be a human US resident, investments become more difficult. An LLC can have members that are individuals, corporations, other LLCs, foreign individuals or structures, etc.