LLC or Sole Proprietorship for Starting a Homestead Business with Attorney Crystal McDonough

Attorney and homesteader - Crystal McDonough - talks with me about different options for structuring a small homesteading business and various liabilities: sole proprietorship, partnership, LLC, corporation.
McDonough Law Group: bit.ly/McDonou...
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Disclaimer:
This is for educational purposes only. Nothing in this video presentation constitutes legal advice. If you need legal advice, contact your local attorney as local state laws vary from state to state. This video discusses potential liability issues and potential ways to mitigate that liability; however, nothing can prevent someone from suing. Your local attorney can discuss your specific situation with you as to how best to protect you and your business from potential liability. You can also contact McDonough Law Group as they have local attorneys that are available in many states.

[@oriollopez5150]

One of the best video I have seen. Thanks for the information.

[@TheGrassfedHomestead]

Glad it was helpful!

[@voidisyinyangvoidisyinyang885]

I JUST filed an LLC and got the certificate recently - so I switched from Sole Proprietor to LLC. Glad this vid corroborated my plan.

[@ChickensAndGardening]

Good move! Never start a business as sole proprietor unless it's literally just selling eggs by the roadside. A neighbor signed a lease for a space for her dance classes, then the recession hit and her business folded, but she was still on the hook for 5 years of very expensive rent, because she was a sole proprietor. She ended up getting a part time job at the local restaurant to pay for it. If LLC, she would not have been on the hook - in other words, the landlord could not have taken her house, car, and other possessions.

[@voidisyinyangvoidisyinyang885]

@@ChickensAndGardening that's wild - I'm gonna change my land deed to my LLC also - just in case my family comes after my land. I just grow Shiitake forest farm mushrooms. haha. So it's basically like selling eggs - as it's a direct customer farm business. Still a "legal person" has way more rights than a "natural person" ironically. If we think about it family wealth is also like a business - since the family members can fight over it, etc. So best to transfer as much of my "natural person" wealth to my "legal person" LLC. haha.

[@ChickensAndGardening]

@@voidisyinyangvoidisyinyang885 Hopefully you'll never need it but better to be safe!!!

[@voidisyinyangvoidisyinyang885]

@@ChickensAndGardening thanks - my dad was a lawyer so I guess it would be a kind of trickle down effect. haha.

[@voidisyinyangvoidisyinyang885]

It's much accurate to say a "Legal Person" has more rights than a "natural person" - look up "Program on Corporations, Law and Democracy" for details. Big corporations are protected by the Bill of Rights - in contrast to "natural persons" on any corporate property.

[@Graceb630]

This is refreshing, I have a lot to think about. I appreciate what you do for this community 🙏

[@prozalie]

She gave some examples but didn't really answer any questions for me. If you have an LLC and get sued and the other party wins, how does that affect your LLC because it's your business and you have it on your property? I would think that would still hurt your business even if it's not your personal property. I know I could look up this information myself but I'm sure the point of this video was to give some clarity. It looks like the insurance is what really protects you.

[@jessicah2345]

Woohoo so excited to hear about the legal series she's going to to on abundance plus and this was an awesome intro to structuring a homestead business

[@Mike-bs5pi]

Not legal or financial advice, but, If LLC as a single solitary entity is the most common business structure, wouldn't following and conforming to that blueprint make your business somewhat "common"? Homesteaders homestead for a lot of reasons, but expect that probably the most common reason has something to do with you've noticed that something in the world isn't right, may e you've identified it as it affects you, and you just want to get away from it all, get back to a simpler way of living. So you get land, start farming, and you decide you want to fortify your assets, and you choose an LLC because that's what you heard online. I can tell you right now, that's not a lot of protection. In fact, it's almost laughable. She casually skimmed over trusts as a "sometimes" solution, without mentioning, maybe she doesn't know, that that's how you get the most security. Private Express Trust for example. If you really want to protect your assets, put them in a trust, and set it up so that you are the administrator to the trust. You own nothing, trust owns everything, and you operate on behalf of the trust. Say you have chickens, cattle, micro greens, and hay as products. Each product should be in its own LLC, all owned by the trust. For added protections, have the first LLC set up in Wyoming or Nevada, then through that LLC, set up the actua farming business. Wyoming and Nevada LLC's have both inner and outer protections, which you don't get in other states. So trusts owns the land or administrates the land trust and umbrella LLCs which in turn own the LLCs that's actually doing the farming. Everything is compartmentalized, and even if they can pierce the corporate veil and go after those assets, you've made it incredibly difficult, and they won't be able to pierce the trust, because there is no legal instrument to do so. So everything is protected. If one gets hit, it's limited to that one thing with very limited assets, and they can't access the land. You own nothing, but you control everything.

[@cardinalrootsfarm]

Thank you for sharing this! When you say to setup the LLC in Wyoming or Nevada is that legal when let’s say living in Virginia? Any other info you could share would be greatly appreciate as I am starting a homestead for the first time and want to stay protected. God Bless.

[@snyderfamilyutube1121]

Be sure to get local legal advice. Many comments made in this video are NOT true in some states. Also, whether or not you have a legal entity, you need insurance. At a minimum you need isurance to pay your legal fees. Even with a legal entity you can be sued. Legal fees can be vasty more expensive than the liability claim.Finally, it is important to remember that no legal entity can protect you from your own personal negligence.

[@morseybv.6072]

BEN hey i saw on Justin Rhodes comments To More Prana Gardens that he had chose to win Ask her to text him I didn't want to say anything on there because Of privacy..maybe you could give J heads up So he could warn folks If I am out of line I'm sorry... Thanks Ben

[@TheGrassfedHomestead]

yeah - lots of scammers right now

[@uddercharmsfarm8159]

No mention of a PMA????

[@LadysFarm]

Special Guest. ❤❤❤ love it thank you for the video. Excited to watch

[@HomesteadPassion]

I love your videos Katie. You are awesome @ladysfarm

[@astatine0085]

what about bartering?

[@joanneganon7157]

Hey Dan 👋 JO JO IN VT 😆💕

[@TheGrassfedHomestead]

Hi Jo Jo!