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If you wanted to rent your car out like this, how hard is it to set up an LLC so if god forbid something like this happens, they can't come after you personally
by xxpor 14y ago
If you wanted to rent your car out like this, how hard is it to set up an LLC so if god forbid something like this happens, they can't come after you personally?
- deleted 14y ago[deleted]
- kalininalex 14y agoThere's nothing inherently wrong with a single-member LLC. The only issue with it is it's a relatively new entity and the body of legal precedents is not large, so it's hard to predict how a court would rule in any particular case. Instead, you could use an S-corporation with the same result, but much better legal visibility. The issue is, however, that you're now operating your own rental company. You'd need to capitalize it, buy commercial insurance, purchase various licenses, etc. This is probably not what clients of RelayRides had in mind.
- deleted 14y ago[deleted]
- kalininalex 14y agoSetting up a company to shield one's assets is perfectly lawful. In fact, many entities out there exist for this very purpose. However, to accomplish it, one must follow certain rules. Simply filing the paperwork is not sufficient. The intent is not important. Either the entity is properly setup and run and shields personal assets, or it's not.
- kalininalex 14y agoSimply setting up LLC (or any other type of entity) is not sufficient. To shield your personal assets LLC needs to be properly capitalized and be managed like a proper business. Essentially, it will at least require carrying some kind of commercial insurance, plus having extra money in the bank for operating expenses (how much - depends on the business). This sort of defeats the idea of effortless car sharing.