Should I build my home as a private party or under an LLC for liability reasons?
Full Question:
I am going to be building a home for my family and will be the owner/builder. We have an alternate funding source and will not be getting a bank loan for the construction. The contractors we have selected are all recommended by friends who have had direct experience with them, and they have excellent reputations. A local builder who is advising us has suggested that I should not build this home as a private party, but under an LLC. What are the risks if I do this as a private party?
05/12/2007 |
Category: Contractors |
State: Texas |
#4543
Answer:
If you are the contractor and hiring all the subcontractors and performing other tasks as the owner/contractor of the home, you could be liable for injuries, as well could be exposed to other liabilites. Liability insurance to cover your liability could be obtained (contact your insurance agent). The suggestion to form a LLC is designed to sheild you from personal liability for things that can happen during construction. People commonly act as owner/contractor without forming a LLC or Corporation but the recommendation is worthy of consideration.
