I too am not a lawyer, but it seems to me that the suer would just name
all the LLCs in the filing and to me it seems perfectly reasonable to
do so.

Why Nevada?
Do you have to pay Nevada taxes?


Denny wrote:
The last time I was sued was when I had a one million dollar umbrella
policy - that's nearly ten million in todays money, btw... I got rid
of
that policy minutes after the judge dismissed the case against me...
If you go into the manufacturing business - and I'm up to my hips in
the early stages of another venture, Oh Gawd will I ever learn! - get
good legal advice on layering of LLC's and holding companies to
insulate against contingency fee attacks...
For example, the sales firm is an LLC which buys the product from a
distributor LLC upon execution of each order, so that the sales arm
never has a significant amount of unsold product in stock to be
seized...
The distributor LLC orders the product from a production LLC..
The production LLC uses:
1. Leased machinery
2. Leased plant space
3. Contracted labor supplied by an LLC - which in turn contracts for
the labor from temp work firms with contractual restrictions (ala
Microsoft)
4. The patents / intellectual property / engineering drawings /
product
rights / copyrights / Brand Name are held by either an LLC or a
holding
corporation, which leases them to the production LLC on a per unit
basis... It is crucial that the engineering drawings, etc., are not
in
paper form at the factory but are viewed online by computor work
stations over the internet with the server offsite from the factory
and
under the control of #4, or perhaps even a #5 layer on top of the
cake......
Any competent CPA can show how to make the money flow rapidly
upstream
and out the top leaving only enough cash in the till at each level
for
each months lease payments, etc...

Yes, a bit of paper shuffling and dollars to create the layered
structure, but inexpensive compared to even one quarterly premium for
insurance - and magnitudes cheaper than defending a suit...
Now, for those who will start yelling that they can get a judge to
seize everything, bygawd! Maybe they can in our insane contingency
fee, system - and maybe they can't - but they have a steep mountain
to climb for no reward (other than psychological) in the end...

BTW, my personal recommendation is to form the LLC's in Nevada...
No I'm not an attorney, but I played one in high school drama
class...

denny