Rule #1: USA Is Litigious – Protect Yourself From Lawsuits
Because the USA is the most litigious society on Earth, protecting yourself is no longer an
option. It’s a necessity. That being said, there is a right way and a wrong way of doing so.
Rule #2: Stay Away From Bad Entities
Sole proprietorship for your business are a terrible idea. Don’t ever hold real estate title in
your own name. Instead hold it in a land trust or held as tenants in common, or joint tenants.
Rule #3: Run Away From Ugly Entities
General partnerships for business are a bad idea. So are c-corporations for real estate.
Also, be very careful with who you rely on for information.
Rule #4: The Good Entities
Typically LLC’s, C and S Corporations are good for business. LLC’s and Limited Partnerships
are typically good for real estate. However, please understand that setting up an entity is
NOT the same as being protected by one.
Rule #5: Maintain Your Yearly Requirements
One of the biggest mistakes I see people make is setting up an entity but failing to
maintain their yearly corporate formalities. This is disastrous and will leave you vulnerable.
After the 5 rules, we then discussed your options. You basically have two main options.
1) Do It Yourself – If you know exactly what you need, you can use a service like
ProtectMeLLC which is an online tool for setting up your entity quickly. In general this is a
good option for 10% – 20% of people setting up an entity.
2) Have Us Do It For You – If you want to make sure you’re doing it right, and don’t
want to deal with the hassles, you can give us a call at (775) 824-0300 or schedule a free