Entity Formation for Newbie Lonnie Dealer


#1

Hello All,

I am a newbie Lonnie dealer in Ohio and I am seeking advise for my business structure. I have 2 deals under my belt and one cooking on a home that I bought from my favorite park. Right now, I’m a sole proprietor working this business as a side gig until it builds to a point when I can fire my boss. Since my Lonnie business is now starting to take off, I wanted to know what structure the seasoned vets are using to handle their Lonnie Deals. Should I stick with the Sole Proprietorship and insulate with $2 million in Business/General Liability Insurance or shift everything into an LLC or S-Corp. I ultimately want to own parks, but that will be a few years out. I’m getting a little nervous about my personal assets as one of my buyers that was recently turned down by the park is threatening to sue the park for defamation of character and discrimination after she got into it with the PM after she was turned down. The funny thing is she lied on her application about an eviction and defamed the PM’s character when she tried to talk her way into the park after she was denied. My contract specifically states all deals are subject to park approval, but I just don’t want to be dragged into a court battle by a dead beat without some protection.

Any help would be appreciated. THANKS!

Brian in Columbus