OK here’s a different Montana LLC question….

[2Driver]

From what I understand sometimes the owner sells the LLC and it comes with the boat or rv as the formed LLC was just for the vehicle and not a “functioning“ business per se. So if I obtain the vehicle, by way of really buying the LLC, the title doesn’t change because now I’m the signing member of the LLC and the vehicle belongs to my LLC. With me?

Here's my anal retentive question. How can I check to be sure it’s a clean LLC just for the vehicle and the LLC doesn’t have any loans or lawsuits against it.

 

[Ace in the Hole]

From what I understand sometimes the owner sells the LLC and it comes with the boat or rv. So if I buy the vehicle by way of really buying the LLC the title doesn’t change because now I’m the signing member of the LLC and the vehicle belongs to my LLC

Here's my anal retentive question. How can I check to be sure it’s a clean LLC just for the vehicle and the LLC doesn’t have any loans or lawsuits against it.

The legal firm handling the LLC should be able to facilitate this…

I’ve only sold two things out of my LLC but didn’t transfer the Llc just sold the asset. I don’t have multiple LLC’s though…we have one and it’s owned by a trust… Some people have an LLC for individual vehicles which sounds like what you are referring to…

 

[thmterry]

I was told if the LLC had any liabilities that you didn't know about they could become yours.

 

[Singleton]

I was told if the LLC had any liabilities that you didn't know about they could become yours.

That is accurate, but any lawyer worth their fees, should be able to identify those during the purchase due diligence.

 

[2Driver]

I was told if the LLC had any liabilities that you didn't know about they could become yours.

Yeah the basis for the post. LOL buy an Rv and adopt a massive lawsuit and debt

 

[530RL]

That is accurate, but any lawyer worth their fees, should be able to identify those during the purchase due diligence.

He could only find perfected liens or filed claims. Other liens are extremely hard to discover and may or may not be valid

The risk of other liens remains and the cost of defense falls upon the new owner of the LLC absent reps and warranties that are enforceable.

That is why, as you are aware, most small business purchases are an asset sale and not the purchase of the entity. Without a large hold back, reps and warranties relating to possible liabilities or claims are economically tenable at best.

 

[Shlbyntro]

Most of the houseboats I work on are done like this for a couple reasons.

A. No sales tax
B. The slip is guaranteed to transfer to the new owner (there is a several year wait list on my lake for houseboat slips and a sale of the boat will break the lease)
C. Houseboats are very hard to get new insurance policies on right now. Current policies can carry over.

Sorry, can't help the OP. Surely a transactional attorney can write up a piece of paper that says all liabilities connected to events predating the sale remain that of the selling party??

 

[Lunatic Fringe]

Most of the houseboats I work on are done like this for a couple reasons.

A. No sales tax
B. The slip is guaranteed to transfer to the new owner (there is a several year wait list on my lake for houseboat slips and a sale of the boat will break the lease)
C. Houseboats are very hard to get new insurance policies on right now. Current policies can carry over.

Sorry, can't help the OP. Surely a transactional attorney can write up a piece of paper that says all liabilities connected to events predating the sale remain that of the selling party??

An attorney will be more than happy to take payment to write up a document attempting to release the buyer from any liabilities incurred prior to the purchase.

They will also be just as happy to take payment to try and defend that document if it's later challenged.
Could get expensive quickly.

In my opinion, If you're buying an RV, buy an RV. Not an LLC with an RV as an asset.

 

[Ace in the Hole]

An attorney will be more than happy to take payment to write up a document attempting to release the buyer from any liabilities incurred prior to the purchase.

They will also be just as happy to take payment to try and defend that document if it's later challenged.
Could get expensive quickly.

In my opinion, If you're buying an RV, buy an RV. Not an LLC with an RV as an asset.

When it comes to an RV I would be buying the RV only not the LLC… If I was buying a multi million dollar vessel then I’ll probably buy the LLC and roll the dice. However we’re talking about an RV so I agree with you.

Buy the RV separate from the LLC… Even if you want to register it in Montana setting up a new LLC and registering that RV to it is not going to be crazy expensive.

 

[2Driver]

An attorney will be more than happy to take payment to write up a document attempting to release the buyer from any liabilities incurred prior to the purchase.

They will also be just as happy to take payment to try and defend that document if it's later challenged.
Could get expensive quickly.

In my opinion, If you're buying an RV, buy an RV. Not an LLC with an RV as an asset.

Yeah I was thinking it might be easier to pay the $500 and start with a fresh llc and just buy the asset.

Fn AZ with $3200 tag. I let principal get in the way to save $2500 a year.

 

[Ace in the Hole]

Yeah I was thinking it might be easier to pay the $500 and start with a fresh llc and just buy the asset.

Fn AZ with $3200 tag. I let principal get in the way to save $2500 a year.

Been very happy with the firm we went with. With mixed assets, estates, a trust or two etc they have guided my family well. I’ll give you a referral if you wish. I think you have my number if not DM me.

Tax is theft. You don’t have to convince me..