[WSBAPT] Ownership of home In LLC?

[sullaw at comcast.net]

This is a start: 


http://www.nolo.com/legal-encyclopedia/llc-protection-members-personal-debt-washington.html 

  
John J. Sullivan 
  
----- Original Message -----

From: "John Creahan" <john at cairn-law.com> 
To: "WSBA Probate & Trust Listserv" <wsbapt at lists.wsbarppt.com> 
Sent: Thursday, December 8, 2016 12:21:46 PM 
Subject: Re: [WSBAPT] Ownership of home In LLC? 



Do you have a citation regarding the charging order? 

I have not focused on this issue, but, as Heather said, I don’t see how transferring the house to an LLC would provide any protection against debts incurred by his sole-proprietor business. 

I would strongly recommend that he transfer the business operations to one or more business entities (an LLC or corporation) for a number of reasons, including potentially limiting his exposure to business debts. 

My $.02. 

John 

  


John Creahan 
john at cairn-law.com 

1325 4 th Ave., Suite 940 
Seattle, WA 98101 
206-621-5848 
www.cairn-law.com 




  


From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John J. Sullivan 
Sent: Thursday, December 8, 2016 10:44 AM 
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com> 
Subject: Re: [WSBAPT] Ownership of home In LLC? 


  


Theoretically if there is a judgment against H&W the creditor could only obtain a charging order for distributions from the LLC, if any, and could not execute against the house itself (in the absence of fraud, etc.).  


  


Remember in CP states the LLC can be a disregarded entity for income tax purposes if only H&W are members.  


  


https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies 


  


Does a single member LLC enjoy protection from creditors in WA? It doesn't in every state. For that purpose is a CP LLC owned solely by H&W considered "single member?" 


  


John Sullivan 

Sent from my iPhone 



On Dec 8, 2016, at 9:32 AM, Heather deVrieze < heatherd at westseattlelaw.com > wrote: 





Someone can correct me if I am missing something, but it doesn’t seem like there is any realistic benefit to putting one’s personal residence in an LLC solely owned by H&W as protection from business liability owned solely by H&W. I have always understood that any protection of an LLC is protecting assets outside of LLC (personal assets) from liability inside LLC (business assets) except where personal liability is found. Am I missing something? 

  

Heather 


  

Heather S. de Vrieze 
Attorney-at-Law 

<image001.jpg> 

3909 California Avenue SW 

Seattle, WA 98116-3705                          

(206)938-5500 

heatherd at westseattlelaw.com 

www.westseattlelaw.com 

  

Click here to connect with de Vrieze | Carney on Facebook:    <image002.png> 

  

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From: wsbapt-bounces at lists.wsbarppt.com [ mailto:wsbapt-bounces at lists.wsbarppt.com ] On Behalf Of Josh Grant 
Sent: Wednesday, December 07, 2016 3:26 PM 
To: wsbar trust < wsbapt at lists.wsbarppt.com > 
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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