Question 6.   I own a large contracting company which involves the use of several company vehicles. What can I do to limit my liability exposure?

Answer.   First we must determine whether the business is established as a sole proprietorship, partnership, corporation or limited liability company. If the business is operated through a legal entity (e.g., LLC, corporation or partnership), we must then determine who is the owner of the large equipment and vehicles. Once this is determined we can then evaluate what will best work under your current circumstances. If operated as a sole proprietor, then we might recommend that the business be restructured and operated through a LLC. If the business involves substantial assets, then we might recommend that these assets be transferred to a second LLC which would lease them back to the primary operating company. We might then recommend that the vehicles be transferred to a third LLC and then leased at a fair value rent to the operating company. The objective would be to design a structure that would provide substantially increased asset protection given your particular set of circumstances.