Mark Kohler won his first lawsuit by proving the defendant's LLC wasn't real. The owner had filed paperwork but kept no separate bank account, minutes, or corporate book. The judge pierced the veil and made him pay the $3,000 to $4,000 debt personally.
When I maintain my LLC or my corporation and I get in a lawsuit, a judge wants to know if you respect your llc, if you really have an LLC or corporation. Did you respect it? Did you have separate banking? Did you do your minutes? Do you have a corporate book? My first experience with this was when I was in college, and I had this guy that didn't pay me and my little business. I was a janitor for eight years, working my way through school, and this guy stiffed me for like three or four grand. So I sued him. And when I got to court, he showed up. I'm not kidding with two lawyers. We get up there in front of the judge, and he's like, this kid can't sue me. I have an LLC or I have a corporation. He had some entity, and he goes, he sued me personally. He can't touch me. I was pre law, and I was in my senior year, ready to jump into law school, and I was so excited. And I had a professor that kind of helped me prep for this thing. And so I said, where's your entity? Do you have your corporate book? Do you have your minutes? Can we see your LLC or corporation? And the guy said, well, I have some of that stuff, but I filed with the state. I have my piece of paper. I'm a corporation. And I said to the judge, well, if he doesn't respect the corporate veil, why should we? He should be doing all the stuff. He's not doing it. And the judge said, you know What? You're right, Mr. Kohler, you win. It was pandemonium, but I was so excited, and I freaking stuck it to this guy, and he ended up paying me out in the hallway.
The secret to managing your family's future #financialfreedom #estateplanning #shorts
Moving Property to an LLC: What They Don't Tell You #realestate #investing #tips
