Business-RealEstate-Law » Asset Protection http://www.business-realestate-law.com/blog Just another WordPress weblog Fri, 20 Aug 2010 18:45:02 +0000 en hourly 1 http://wordpress.org/?v=3.0 Protect Yourself From Personal Liability: You’ve Filed as a California LLC or Corporation, but is that Enough? http://www.business-realestate-law.com/blog/protect-yourself-from-personal-liability-youve-filed-as-a-california-llc-or-corporation-but-is-that-enough/ http://www.business-realestate-law.com/blog/protect-yourself-from-personal-liability-youve-filed-as-a-california-llc-or-corporation-but-is-that-enough/#comments Fri, 07 Aug 2009 23:38:13 +0000 sandiegolawfirm http://www.business-realestate-law.com/blog/?p=42 Many San Diego businesses choose to incorporate or set up an LLC (a limited liability company) to take advantage of the benefits offered by these business structures, including protection of your personal assets from company debts and lawsuits.  California courts take the division between a corporation or LLC and its shareholders, members, officers, and directors seriously-and recognize that protection from personal liability is a legitimate reason to form a corporation or LLC.  Even if courts generally don’t “pierce the corporate veil,” it can happen, but there are things you can do to help prevent putting your personal assets at risk.

For example, here are a few general guidelines to follow when creating and maintaining a corporation or LLC:

  • Keep your personal finances and the business’s finances separate.
  • Legally transfer ownership of company assets to the business.
  • Make sure the business has enough assets or insurance to satisfy potential liabilities.
  • Always sign on behalf of the corporation, being sure to include the corporation’s name and your title.
  • Act in good faith in your business dealings.
  • Keep up with yearly filings, hold corporate annual meetings, keep minutes of the meetings, and maintain proper and accurate records.

As experienced business attorneys, we’re well aware of the potential pitfalls when a corporation or LLC is improperly created and maintained.  We’ll advise you on these and other business practices to help keep the business’s identity separate from your own and avoid endangering your personal assets.  If you’re thinking of forming a corporation or LLC, we’ll discuss the incentives and other important considerations with you when determining the best business structure for your company.  Reach San Diego Law Firm’s business law attorneys at (619) 794-0243.

]]> http://www.business-realestate-law.com/blog/protect-yourself-from-personal-liability-youve-filed-as-a-california-llc-or-corporation-but-is-that-enough/feed/ 0 When Unmarried Couples Buy California Real Estate: Protect Your Investment When Living Together http://www.business-realestate-law.com/blog/when-unmarried-couples-buy-california-real-estate-protect-your-investment-when-living-together/ http://www.business-realestate-law.com/blog/when-unmarried-couples-buy-california-real-estate-protect-your-investment-when-living-together/#comments Fri, 07 Aug 2009 23:15:49 +0000 sandiegolawfirm http://www.business-realestate-law.com/blog/?p=32 As we all know, it’s still a buyers market here in California, and you and your partner may be thinking about pooling your resources and buying a home together.  This can be a great investment, but it can also turn out to be a costly mistake if you don’t take the right steps.  Consider the story of a woman and her boyfriend who bought a townhouse together, as told in a Christian Science Monitor article by Marilyn Gardner.  She had contributed a smaller portion of the down payment, and had been paying part of the mortgage, but the home was titled in her boyfriend’s name only.  When they broke up, he kept the home and the equity, and she lost all the money she had put in. 

While unmarried couples living in California face many of the same issues as those who are married or in domestic partnerships, cohabiting couples usually take on a greater financial risk since the family law system isn’t there to provide any protections.  Even so, both of you can minimize risks and protect your financial futures by choosing the form of title that’s right for your situation and creating a cohabitation agreement.  A cohabitation agreement covers the sources for the down payment, whether both of you are responsible for mortgage payments and insurance, and addresses improvements and repairs of the property.                                                

Cohabitation agreements can sort out more than just real estate issues, they also establish what other assets will be shared or kept separate, how debts will be handled, whether you can make medical decisions for one another, and so on.  If you’re planning on buying a home together, we’ll advise you on title issues and create a cohabitation agreement that meets your goals and answers important questions to help ensure things are handled fairly and clearly in case the relationship ends or you sell the real estate.  Contact our skilled San Diego Law Firm attorneys at (619) 794-0243.

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