Many decades ago when I got involved in real estate in Texas, my real estate attorney advised me to practice asset protection. I did. As I discovered then, if one works in a highly litigious industry, such as real estate, protecting one’s assets is simply a part of good business practice.
Many states provide for asset protection by forming a Limited Liability Corporation (LLC). California is not one of those states, but there are other ways to get the job done.
When I started my California real estate home inspection company in 2001, I discovered the law office of Robert J. Mintz, an attorney based a few miles north of me and specializing in asset protection. In fact, he has a great book titled Asset Protection for Physicians and High-Risk Business Owners. Hard copy is is available free on his web site, or you can read it online or get a Kindle version.
Get it here. Scroll all the way down and look at the lower right side.
The cool thing is that when you retire from your high-risk profession, you don’t have to unprotect the assets. Each state is different, so get Mintz’s book and use that as a starting point for thinking about your assets and how to protect them should something happen in your life that resulted in a lawsuit against you. That something could be as simple as someone tripping and falling on your property while at a holiday party and suing you for massive medical bills.
Nothing in this post should be construed as legal advice. Use it as a starting point and then contact a qualified asset protection attorney in your state.