Purchasing liability ins for a hunt camp in Ny 8 individual owners we own the camp together on leased land responsible for 1 acre , if we have a LLc are we protected as individuals if a lawsuit exceeds the amount of the policy ?
Generally speaking, yes; however, there are circumstances under which the protection of the LLC could be pierced. Rather than discussing the issue in the abstract, however, I would strongly suggest that you consult with a competent local attorney to discuss the issue in detail and make sure that you have the protection you need and, more importantly, learn what you need to do to make sure you don't lose the protection of the LLC.
My answer does not constitute legal advice and may not be relied upon by anyone for any purpose and does not constitute an attorney/client relationship or an offer to form such a relationship. This disclaimer is intended to be fully compliant with the requirements of Treasury Department Circular 230 and the terms thereof are fully incorporated by reference. If you wish to consult with me please contact me at dana@nytaxcounsel or visit my website at www.nytaxcounsel.com
Generally yes but it is not absolute. I suggest you consult with a local busines lawyer and/or insurance broker.
I am a former federal and State prosecutor and now handle criminal defense and personal injury/civil rights cases. Feel free to check out my web site and contact me at (212) 577-9797 or via email at Eric@RothsteinLawNY.com. I was named to the Super Lawyers list as one of the top attorneys in New York for 2012. No more than 5 percent of the lawyers in the state are selected by Super Lawyers. The above answer is for informational purposes only and not meant as legal advice.
I agree with my colleagues. An LLC is an excellent legal tool for isolating the liabilities generated by a risky asset as the venture you described. However, it will not protect you as an individual neither your personal assets (bank and brokerage accounts, your primary residence and other investments). A plaintiff may always try to pierce the corporate veil of your LLC by holding you personally liable by theories as negligence or gross negligence.
Depending on your total personal net worth, you may consider combining (your stake in) the LLC with a legal tool that was specifically designed for asset protection purposes: a Familly Limited Partnership filed in state with strong charging order rules as AZ.
You should seek advice with an attorney that has specific expertise in the area of asset protection planning.
Douglass Lodmell is the nations #1 Asset Protection attorney and has clients in all 50 states, protecting over $4 Billion in client assets. Answers given by him in this forum do not establish an attorney-client relation. He advises to seek a specialized attorney in the area of your interest for legal representation.