I am wondering whether it is worth it for me to incorporate or form an LLC
. Here is the situation: a retail biz I owned (in the state of NM) for 7 years has failed & the commercial bldg is in foreclosure. I have 2 SBA loans on it; the bank filed a foreclosure lawsuit and I filed a response to it on 7/17/13.
Other assets I own include 50% of the house I live in (in New Mexico), with my son owning 25% and my lifemate of 12 years 25%, and there is no mortgage on it.
I also own a rental house with 2 mortgages which are probably at market value right now. It's bringing in an extra $300 per month over the taxes, insurance & interest-only mortgage payments.
I still am a license insurance agent in California & receive about $2K/mo in renewal commissions. I am also a Wedding Officiant (ordained ULC Minister of 12 years), bringing in from $500-1500/mo officiating marriages and other ceremonies.
My biggest concern is that the bank will have a deficiency balance after the sale of the foreclosed property and will come after any of my other assets. I have nothing against filing BK at that time if that is necessary but wondered if, with these disparate assets and sources of income, if an LLC could somehow protect me or if it's more than is possible without forming multiple LLCs for different assets. Thanks for the advice!