Legal Question in Real Estate Law in California

Re: Advice on setting up LLP

The LLP is a separate legal entity that can be sued and file suit itself.

The rule is that because the LLP is its own entity, it can be liable to the extent of its assets. Meaning, if the LLP only has $1 then that is all that can be collected, and the Plaintiff has no further avenue or relief to collect from the organizer who has the personal assets.

The key thing with such entities is to structure them properly otherwise, the owner will be exposed to the liablility of the corporation's wrongdoings.

Please feel free to call or shoot me an e-mail if I can be of any assistance.

Re: Advice on setting up LLP

Yes, as long as it is set up properly and you follow all the rules of an LLC.

Re: Advice on setting up LLP

Yes they can. You need to do a number of things to get the protection and certain things cannot be protected against (one's own negligence). Additionally, you should have adquate insurance that may either preclude the need for the LLP or be used in addition to it.

Joel Selik

www.4thelaw.com

800-894-2889

Re: Advice on setting up LLP

No, not really. However, it might if the other party doesn't do their homework. It is far better to put your estate into a Family (living - intervivos) Trust. If done competently the package includes everything you'll need to avoid probate, and conservatorship. You don't have to use your family name on the Trust, and the Trust isn't recorded any where. So the Smith family can have the Murphy Family Trust. Although I'd use a historically significant family name for the trust. There are a number of twists than can be done with Trusts depending on your actual wealth. There's Family Limited Partnership Trust and a other variations. when I gave presentations on trusts I pointed out that trusts were like a tailored suit. They can cover up a lot of problems. The cost runs between $500.00 to $1,500.00 and do go to someone that does a lot of them. If your estate is over a million the cots will be more. However, in the event of a stroke, or other disability they'll be worth their weight in gold. So the Trust , Pour Over Will, Durable Power of Attorney for Asset Management, and Power of Attorney for Health Care plus the Living Will (no extraordinary medical measures to keep you alive if you want that option) as a part of the Health Care Power of Attorney, or as a seperate document is important.

Re: Advice on setting up LLP

Most of the prior advice is sound. However, you may be confusing various business entity forms. An LLP is a form of partnership, and requires at least two partners. California law now provides for one-person LLCs (Limited Liability Companies), which could be a better alternative. The election of a form of business entity, and the method of transferring property to it, have tax consequences. If you proceed, get advice specific to your situation (i.e. based on personal interview and full knowledge of the relevant circumstances) from legal and tax professionals.