Legal Question in Business Law in Arizona

Re: Home Business

The Arizona Homestead Exemption protects up to a certain amount of the equity in your home, but no more. You may want to form an LLC to protect your personal assets against liability. For instance, someone might sue your business/you personally for excess home equity and other assets, which are fair game if you and your business are the same "person". Forming an LLC creates a separate entity or "person" who owns the equipment, other assets and debt of the business only. In the event of a lawsuit against your LLC/business or an LLC/business bankruptcy, your LLC would normally be liable only up to the total assets held by the LLC which it uses to do business.

Fees to create a Limited Liability Company: 750.00. Includes Consultation, Preparation of Limited Liability Company Articles of Organization, Operating Agreement, LLC Resolution, Waiver of Notice and Minutes of Organizational Meeting; including EIN, expedited filing fee and 3 publishings.

Re: Home Business

An LLC is a good way to protect your personal wealth and limit liability arising out of your business activity. Liability insurance may not cover all the liability which may be attributed to your acts, so it is wise to form an LLC. A portion of your house equity is protected, but not the equity in your car, and if I had a judgment against you personally, I would go after your house and car to get paid. There are cheap ways to get the information to form a LLC, however, with legal counsel, you may file the forms but not properly organize the LLC, and thus, not get the protection against liability that you are after.