Changing Identies

[OKRICHLAND]

Hi.
OKRICHLAND here.
I know that this is a question for my CPA but I also want to ask someone who has actually been there and done this.
I am a corporation and I have many sub-titles under that umbrella;
some of witch include: "Kingdome Productions Recording Studio",
"Bathroom Plus Tile and Remodeling" and a property management company.
To get to the point; It is very difficult for my wife to attend closings
at certain times of the day. especially when I am doing more then one a day.
My wife has to take off work to sign at each of these closings.
I would like to move my future properties under the name of my
property management company (Under my corporate umbrella)
so that my wife will no longer have to sign at the closings, or sign any refinance documents etc, etc.
If I do that, will I still be able to show that I own the properties in my given name, yet under the name of xyz properties? Can I move my existing properties under that same umbrella?
Will I have to show special documentation every time I Sign a contract or can I verbally give the
information:
ABC Inc. doing business as XYZ properties? These contracts may also include insurance policies etc, etc.

[Dan Auito]

Hey Dave you're not trying to swindle the wife out of her fair share are you? Just kidding I know better than that. Here is the address of the father of protection, I would bounce the question of of him http://www.nftpap.com/ My CPA just returned from Vacation but Matt should be showing up here soon and may have additional answers regarding your questions. Definitely check out Jay Mitton and also check www.turnpike.net/lawnet (questions answered free)

[OKRICHLAND]

Hay, thanks for the come-back Dan.
Actually, as we who have lived a little bit of life already know,
she's gunna get it all anyway. :box:
This is why we open car doors and work our fingers to the bones
without so much as a whimper.
This way she allows me to think that I have the upper hand;
As long as I behave myself. :praise: :SM120:

Actually, This is more for convenience than it is for protection.
I love my wife so much, that there is nothing that I wouldn't
do for her. :SM050:

[secoon]

Dave,

The setup that you are suggesting would be a mistake, simply from an asset protection angle. You never want to mix types of businesses within a corporate structure. Here is an example. You hold everything under XYZ Inc. and someone gets hurt while you are remodeling a house. They sue XYZ Inc., instead of you, and they can attach all assets held by the corp. You should have each business or venture held in it's own entity.

To answer your direct question, you would no longer own any of the property, the corporation would.

The simple solution to your problem would be to have your wife sign a power of attorney. That way, you can sign for her.

Sean

[Aldo]

If your primary reason for jumping through all those hoops is to eliminate the need for your wife at attend closings, simply have her pre-sign the documents. Locally (and hopefully in your area) a party to a closing can pre-sign up to several days before the actual closing. That way she could stop at the lender's office on the way to or from work to sign the docs.

[OKRICHLAND]

Hay Sean,
I never thought of it that way. :SM031:
I have a Property management company, a Recording studio and a remodeling company under the corporation umbrella.
Some serious changes will have to be made immediately to my corporate structure and my CPA because I was never informed of these liabilities.
Tomorrow I will talk to my attorney about the power of attorney method.
If you are an attorney, then let's stay in touch.
You can send personal e-mails through my web site. Just click here: www.remodelingcreations.com :SM058:

[Dan Auito]

Leave it to Sean and Aldo to tag team a question to finality, yep, yep and double yep to what has been said :SM023:

[OKRICHLAND]

Sounds like a plan Dan.
I'm wandering if I should set up LLC's for each property individually
or even put them in small groups of 3 or 4, depending on the value
of the properties. :SM088:
Obviously, I would put the higher valued properties in the smaller packages.
What do the attorneys think?

[Aldo]

Another thing you might consider, possibly regardless of value, is to place higher risk properties in the small LLC's. I don't know what type of properties we're talking about, but I'm thinking of lower income housing, properties with swimming pools or where dogs are permitted as examples.

[OKRICHLAND]

Hay Aldo,
Thanks for the reply.
I was wandering if I could even have multiple LLC's.
I'm gunna stick with that idea and talk with my CPA
tomorrow.

[Aldo]

Hay Aldo,
Thanks for the reply.
I was wandering if I could even have multiple LLC's.
I'm gunna stick with that idea and talk with my CPA
tomorrow.
You can have as many LLC's as you're willing to pay for. I, personally, question the value of multiple LLC's unless unusual circumstances are involved. A single entity owns all of my castles and I have good insurance with $2M umbrella coverage. In 28 years, I've been sued a few times. The largest settlement was $10K(paid by ins.). Just my thoughts.

[OKRICHLAND]

You can have as many LLC's as you're willing to pay for. I, personally, question the value of multiple LLC's unless unusual circumstances are involved. A single entity owns all of my castles and I have good insurance with $2M umbrella coverage. In 28 years, I've been sued a few times. The largest settlement was $10K(paid by ins.). Just my thoughts.


Excellent thought Aldo I will consider the single LLC.
I wonder if I can use the general liability coverage that I have on my corporation
to also cover my LLC for the same price, or does the LLC have to be completely separate?
These are questions that I will be asking my insurance agent today.
Thanks again for the reply Aldo.