Setting Up And Properly Structuring LLCs: The Cost
Setting up and properly structuring LLCs isn’t cheap. I know this. However, they pay dividends in the long run. Okay, everybody sets up an asset holding company, because that’s where you have a lot of your money tied up. The question becomes is, do I really need an operating company? Do I really need the shell corporation for me to do all of my business with? The answer, I believe, is yes. What a shell corporation does, this operating company, is it allows you to have a face to the world. To limit your personal liability from all of the business dealings that you do. This means real dollars, because a lawsuit against you, even if they can’t collect against the assets, it goes against your credit score. And with a low credit, score it means that you are not able to obtain the financing and be able to operate your business and acquire property, do deals the way that you want to. Those are real dollars. If you’re talking about less than $1,000 to protect your credit score, you’re talking about pennies on the future dollars that a bad credit score will cost. My name is Scott Smith, I’m an asset protection attorney out of Austin, Texas. I’m a real estate investor, and I want to help you.