Hi Lee Phillips here
Hi Lee Phillips here

I want to talk to you about what I'm gonna call the disadvantages of an LLC
I want to talk to you about what I'm gonna call the disadvantages of an LLC

however what we're really talking about is a
however what we're really talking about is a

the disadvantage in this case
the disadvantage in this case

of an LLC or a corporation or a partnership or anything else
of an LLC or a corporation or a partnership or anything else

and here's the catch
and here's the catch

you are entitled to do any legal work you want for yourself
you are entitled to do any legal work you want for yourself

you can do your own trusts and wills
you can do your own trusts and wills

and the Accumulation and Preservation of Wealth Set
and the Accumulation and Preservation of Wealth Set

teaches you perfectly how to do that
teaches you perfectly how to do that

in fact I'm sure that you can do it better than
in fact I'm sure that you can do it better than

90% of the lawyers out on the street
90% of the lawyers out on the street

for yourself
for yourself

but you can't do it for somebody else
but you can't do it for somebody else

you cannot represent somebody else doing their legal work
you cannot represent somebody else doing their legal work

lawyers have a union
lawyers have a union

we don't call it a union we call it a bar
we don't call it a union we call it a bar

the bar is the lawyers' union
the bar is the lawyers' union

and it says that you cannot represent somebody else in legal work
and it says that you cannot represent somebody else in legal work

you have to have the lawyer
you have to have the lawyer

we love that
we love that

but what happens when you
but what happens when you

take your rental property and you put it into an LLC
take your rental property and you put it into an LLC

and you have to evict the tenant?
and you have to evict the tenant?

Well you got to go to court, maybe?
Well you got to go to court, maybe?

The problem is you can't represent the LLC in court
The problem is you can't represent the LLC in court

that means you have to hire a liar
that means you have to hire a liar

I mean a lawyer
I mean a lawyer

well liar that's Texan for attorney, Ya'll go down see your liar
well liar that's Texan for attorney, Ya'll go down see your liar

at any rate you've got to hire the dude
at any rate you've got to hire the dude

and he has to represent you in court
and he has to represent you in court

because if you show up in court
because if you show up in court

on behalf of the owner of the rental unit
on behalf of the owner of the rental unit

the LLC
the LLC

you can't do that
you can't do that

the court won't let you
the court won't let you

so that's a definite disadvantage
so that's a definite disadvantage

now you can maybe
now you can maybe

depending on the state
depending on the state

go to small claims court
go to small claims court

and as the manager of the LLC you could possibly represent the LLC in small claims court
and as the manager of the LLC you could possibly represent the LLC in small claims court

so that's a possibility
so that's a possibility

but one of the disadvantages is
but one of the disadvantages is

you have to be represented by counsel
you have to be represented by counsel

or your LLC rather has to be represented by counsel
or your LLC rather has to be represented by counsel

whenever the LLC has a problem
whenever the LLC has a problem

it comes back to the basic LLC stuff that we go through
it comes back to the basic LLC stuff that we go through

in the LLC Wizard all the time
in the LLC Wizard all the time

it's the formalities
it's the formalities

you have to understand
you have to understand

that this LLC isn't you
that this LLC isn't you

and if you treat it like you
and if you treat it like you

you lose all of the corporate shield and everything else
you lose all of the corporate shield and everything else

that's what we go through in such detail
that's what we go through in such detail

in the LLC Wizard
in the LLC Wizard

but one of the things that you can't do
but one of the things that you can't do

and it is key here
and it is key here

is this isn't you
is this isn't you

therefore the judge
therefore the judge

the courts
the courts

the legal system is going to say hey
the legal system is going to say hey

this isn't you
this isn't you

you can't represent this other guy
you can't represent this other guy

only a lawyer can represent another guy
only a lawyer can represent another guy

and so you're back to square one with the liar
and so you're back to square one with the liar

and a lawyer involved and you have to hire him
and a lawyer involved and you have to hire him

that's a disadvantage
that's a disadvantage

of holding property in an LLC.
of holding property in an LLC.

Now I'm gonna think maybe that the disadvantage there
Now I'm gonna think maybe that the disadvantage there

is outweighed by all of the advantages
is outweighed by all of the advantages

the asset protection, the tax possibilities, everything else
the asset protection, the tax possibilities, everything else

so most people represent or concentrate
so most people represent or concentrate

on the advantages
on the advantages

and I'm gonna say that the advantages
and I'm gonna say that the advantages

far outweigh the disadvantages.
far outweigh the disadvantages.

So Lee Phillips talking about a disadvantage
So Lee Phillips talking about a disadvantage

of an LLC or a
of an LLC or a

corporation or a partnership or any other legal entity
corporation or a partnership or any other legal entity

that's not you.
that's not you.