LLCs & Business Asset Protection Strategies (What Would YOU Do?) Prt 3 of 3

LLCs & Business Asset Protection Strategies (What Would YOU Do?) Prt 3 of 3


– I, for years and years and years, loved hiring day laborers. I did. I would drive down to
the nursery parking lots, I’d drive down to Home Depot parking lot, and I like doing things myself. My wife says, “Why are
you wasting your time “doing gardening?” Because it’s zen for me. I get out there, I’m pulling weeds, I’m trimming bushes, I love it, right? But sometimes I needed help. And so I’d drive down, some of you guys are looking at me, like, “You like weeding?” (laughs) Yeah! Sometimes I’m out there mowing, sometimes I’m mowing my artificial turf. No, I’m kidding. (laughs) But I need help to plant trees sometimes. I can’t lift this stuff myself. So I’d drive down to the nursery and hire a bunch of day laborers because they were awesome. I’d go in there and I’d
say, “Hey, can you go ahead, “can you help me dig some holes, and… “Do you know irrigation? “Can you do some repair here? “And then can you perform brain surgery?” And answer’s always, “Yes, yeah!” They’re like, “Yeah,
absolutely, absolutely!”, right? And their craftsmanship,
it’s fantastic, I love it. And then I realized through
some clients’ experiences that that’s not a great thing to do. And to give you an example, Jody owns and apartment
building in her own name. Her apartment manager,
this is one of those things we need to kind of analyze, hires two people from the
Home Depot parking lot to wash windows. One of the workers falls
from a ladder and is killed. Jody has three LLCs, California LLCs, that’s another point,
with one property in each. What’s at risk? (audience members speaking) What about these… (audience members speaking) Excellent, bad state, they
can pierce right through. Let’s go back a little bit. You know what? Jody didn’t hire, Jody didn’t hire the Home Depot workers. (audience members speaking) Who taught you guys yesterday
because that’s exactly right. The guy who was speaking
up here, you know, must have been a genius, I tell you. (audience laughs) This is fantastic, we got
that agency relationship that I mentioned in the
respondeat superior, right? The principal is liable for
the agent’s activities, right? So yeah, you guys didn’t
even fall for that trick. So why, next thing comes up, is what happens if Jody has
a huge insurance policy? I mean a 10 billion insurance policy. – [Audience Member] Exclusions? – Exclusions, you’re hiring non-licensed, non-bonded workers. The insurance is a big one because you have to understand, that’s why I stopped doing it. Because no longer was
it worth the day laborer to come on my property because there was an exclusive, if they got hurt, I pay for it. Now I had to spend a little more money now because I have to hire
licensed contractors to come out and do it, but it’s… This is funny, it gives
more peace of mind. I was out of town with some friends, and my wife says, “Hey, I just got on,” I think it was Yelp,
or some sort of labor, like where they can come
out and put ceiling fans in the house, and she
says, “They’re coming here “on Saturday,” or something like that, or is it two days before, and I said, “Are they licensed and bonded? “They’re like,” and she
goes, “I don’t know.” She’s an attorney, too. I’m like, “You verify it, right now. “Let’s just get this taken care of.” Because we have 25-foot ceilings. And thus the odds go way up, right? Okay, so we already nailed this, guys. You know what? Those California LLCs, they
can pierce right through them. You get it? Question. – [Audience Member]
(mumbles) them if there is actually money moved between them, so even if it was isolated, would it still be easy to pierce? – [Michael Bowman] That
was the original law. And then we have California,
Colorado, Florida kind of ruin this. Where the judges or the juries
said, “That’s not fair.” The legislature came in
and said, “No, we’re going “to allow judicial foreclosure.” And so they changed the law. It was the ULLCA, then the RULLCA, and that’s what kind of
messed everything up. ULLCA is the Uniform Limited
Liability Company Act. RULLCA is the, anyone know? (audience member speaking) Revised Uniform Limited
Liability Company Act. All right, so we got this… I use this to see exactly where we’re at. You know, with knowledge and
stuff, you guys nailed it. This is fun. (upbeat electronic music)

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