central - east central Minnesota - | Min till wheat - 12/6/2017 16:57 It separates liability. For example let's say I have all my equip in an LLC, all my cows in an LLC, all my land in an LLC, an "operating" LLC that leases the other LLCs, and I accidentally T-bone somebody while hauling grain to an elevator. I'm found at fault and lawsuits pile on. If set up correctly they can only come after the LLC that owns the equipment because that is where the semi is owned. Has to be tight with written leases and operating agreements. If I were an attorney, litigating against your LLC's . . . I'd sue each and every one of them and let you prove (through your record keeping and attorney) that they are actually independent of each other. In the mean time, you'll be paying dearly to defend them. Your record keeping better be impeccable. I'd much rather spend a few more dollars a year on insurance and less time, money and effort with my CPA, account and attorney ensureing the "Vail" is solid and intact.
A good insurance rep will protect a business from perils, as good as or in some cases, better then any LLC will. Don't get me wrong - there are places for LLC's . . . .but, for the most part - insurance will do a much better job at liability coverage (lawsuits) than any LLC. And to add insult to injury, the LLC still needs insurance to be protected . . .. heck, just get the insurance needed for the job and forget the LLC.
Edited by iseedit 12/6/2017 18:11
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Putting Farm into a LLC
