A new racing league.
I've been speaking to some people and some have reccomended registering my team as a LLC buisness.
What are the pros and cons by doing so, and what other options are out there.
Right now my team is personally owned and operated. Im not sure Im protected in case of a mishap.
All you legal eagle types feel free to jump in at any time.
Last edited by BRUCE SEROFF; 11-17-2003 at 01:29 PM.
A new racing league.
There may or may not be some tax advantage to doing this too. The liability protections certainly would help things out, but how much real liability is there? I would say yes if you were making money and wanted the protection and the ability to bill the company for services (transportation, rent, salary, etc). But that's not true with offshore racing.
Remind me on the 13th, I'll give you the run-down via voice. Bottom line: My CPA (a very sharp guy) recommends it.
Vin and I did an LLC....suggested to us by a few people....
We also registered "Pit Lizard" as an LLC. The way I understand it is that (God Forbid) your boat is involved in an accident, (on or off the race course) you can only be sued for the assets of the corporation (your boat). You can't be sued personally, therefor it offers you protection personally-in most cases-your house.
It also allows you to claim any profits/losses racing-it gets complicated here and I don't know all the details.
You can register an LLC on line for about $200.00
We did it mostly for the suit protection.
Last edited by Fast Shafts; 11-17-2003 at 05:01 PM.
Well, incorporating puts a layer of protection between you and the other guy's lawyers. But the layer is not impenetrable. They can always sue the operator for negligence. Neveretheless, $200 (a LLC is cheap to start and cheap to run, least amount of paperwork) are definitely worth it.
Crash Test Dummies LLC!
My biz, Hilsinger Motorsports, LLC is an LLC. Many advantages, basically no disadvantages. It is run on paper like a sole proprietorship, yet gives you some of the advantages of a corportation in ways of personal property protection and liability protection. Every little bit of help is necessary in the sue happy soceity in which we now preside.
The tax write offs are like any other business as long as you can exhibit (not sure the exact $$ ammount) that it is not just a hobby, yet a business operation. We sell XS steering systems/marine products, 303 Products, Bio Kleen Products, Redline Sythetic Oils, Apperal and things like that, so I have some other biz income within the motorsports biz that helps it's legitimacy from a tax standpoint.
Bottom line, my operation is more than just racing, it is a full scale business with a vendors license and liablilty insurance, etc.
Either way, I would HIGHLY recomend going LLC. Just get setup with a good biz attorney and he will draw up the papers and do the necessary origination papers and stuff for about $500 or so. I do not know about the online apps, but I would be more comfortable going to an attorney who has experinece with this stuff. It is very simple, but it needs to be done right.
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