[WSBAPT] Ownership of home In LLC?

[Roger Hawkes]

Josh: talk to their tax accountant to be sure it does not complicate things; but yes, for liability protection holding assets in a corp or llc protects the other assets from exposure to damage claims, unless the claim is on account of some tort behavior of the individual; then all assets of the individual are exposed.

Roger Hawkes, WSBA 5173
19909 Ballinger Way NE
Shoreline, WA 98155
www.hawkeslawfirm.com<http://www.hawkeslawfirm.com/>
206 367 5000 voice
206 367 4005  fax

From: Josh Grant [mailto:jgrant at accima.com]
Sent: Wednesday, December 7, 2016 3:26 PM
To: wsbar trust
Subject: [WSBAPT] Ownership of home In LLC?

I have a client who has a large business, fully insured, however the activity has a potential for substantial liability (environmental, accidents to workers).  It is owned as a sole proprietor by client with his wife.

He and his wife owns some real property including a family home.

It would be difficult to transfer everything in the business into an LLC. because of the nature of the assets.  Same with transferring everything into a Corporation.  Also he may sell the business in a year or so.

He is hoping for some reduction in risk exposure to his  nonbusiness assets.

I have told him that their isn’t  a lot of protection available, however, an LLC might be helpful (create a small barrier) for a business related claim, if for some reason he doesn’t have enough insurance.

Is there a problem if he puts the real property he and she owns in an LLC?  Would it provide any protection to their assets? Other suggestions?

Josh Grant

Joshua F. Grant, PS
Attorney at Law
P. O. Box 619
Wilbur, WA 99185
tel 509 647 5578
fax 509 647 2734
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