Nevada has just passed a new law (SB405) that could provide business owners greater protection from creditors (the law goes into effect October 1, 2011). It addresses existing problems in at least two areas in the world of asset protection: single member limited liability companies (SMLLCs) and charging orders.
The highlights of this new law:
1. Single Member LLCs and Single Shareholder Corporations
Here’s the problem that currently exists. In recent years, a few bankruptcy courts outside of California have allowed creditors to do something to owners of SMLLCs that they could not do to owners of LLCs with more than one member: pierce the LLC protective veil and get to the owner’s personal assets. The detailed legal explanation of the courts’ reasoning in those cases is beyond the scope of this article. The impact, however, is effectively to put the smaller investor (including the husband and wife, who are treated as a single member in the eyes of the law) at greater risk from creditor attacks than the larger investors (who generally have a greater ability to include at least one additional member in their LLCs). That different treatment just feels unfair, regardless of what road the court takes to reach that conclusion. In our law firm, we routinely advise our clients contemplating the SMLLC to address this risk (even though no California court has followed this trend yet) by adding at least one member to their LLC, even if that member owns a relatively small percentage interest (for example, 5-10%). [read more . . .]
Hassle free 9% ROIHow involved are you with your investment?
From my expereince some investors like to be very involved with the details and the ongoing of their investments, for example have several rentals and invest in a fix-and-flip. Others like to be less involved, for example partner with someone or join a group investment.
Your Involvement in the investment is normally a result of experience, available time, available funds, and personality, among other considerations.
Which one are you? Are you an Active or Passive investor? This is not a quiz, and there isn’t a right or wrong answer here. Nonetheless, this is a very important question you should be asking yourself. The answer will help you determine your investment path, at least for the time being.
Most of the investments we are involved in require investors’ active participation. Many times, investors show interest in investments that require less of their active involvement, i.e., on the passive side. I like to call it “the back-seat investor.” In many scenarios, being a “back-seat” investor provides a more passive involvement and reduces risks.
If you are an active investor we have several markets and opportunties for you to invest in. Visit www.simplydoit.netto find out about these properties and markets and contact us about buying any of them or other properties in these markets.
If you are a passive investor and not sure what is the best way to go about it, let us know – by email. We may have a program for you, which should provide you 8.5%-9% ROI, while taking less risk and sitting in the back seat.
Not sure if you are a passive or active investor? Or just not sure how to get started?
Set up a time to meet with us and we can help you figure out what’s the best path for you to take.
– Dani Beit-Or
Tue. 9/6/11 7PM Atlanta Turn-Key Rentals In the room & via web RSVP & details
Thu. 9/8/11 7PM Super Charge Your IRA with Two Passive Assets Mt. View, CA RSVP & details
Tue. 9/13 NEW Concept: “Groupon” Purchase of Duplexes in Austin In the room & via web RSVP & details