[xxxxxxxxxxxxxJeff Knoll]

Well I'm running into a wall on the desert forums so I'll try my friends in the rocks.

How are you guys setting up your teams? Partnerships, LLC, S corps, C corps or just flying below the radar? Now I know each state is a different game and if your not playing in So Ca. your way safer, but I'm in So Ca. and would like to keep the stuff I have worked for. I'm sure potential Marketing Partners would like to see Legit businesses with INS. so what are you guys doing?

This is for a Jeep Speed team. Running only the JS series this year.

I understand that this is personal so if you want to keep it that way drop me a PM as I would appreciate the advice. thanks in advance.

Jeff Knoll

 

[xxxxxxxxxxxxxJeff Knoll]

Well I’ll post this info on incase anyone else is interested or if someone ever searches the subject.

In my case an LLC is best but you should do your own research. Here are a couple websites in which you can do it yourself if you so choose.


http://www.nationwide-incorporators.com/

http://www.legalzoom.com/

Through Pm’s I was also given the advice about releases and procedures so I will set up some sort of handbook that each team member will receive that spells out safety and the like. I’ll throw in a copy of the Weatherman’s proper use of radios and BB’s what about you for good measure.

Nice thing about setting up a legit business is that because there is a cash purse you could actually make money (yea right) but that might allow for some tax benefits(read loss). Consult your CPA for advice not some hack on the internet. Be advised that the gov’t likes money more then any of us and might figure out that this is just a hobby ( well maybe an unhealthy obsession) and tell you your not a business(read pay up sucka). Again Internet hacks are not always the best form of advice. See a professional.

I gather there are all sorts of ways the big teams move stuff around, as you don’t buy whole towns without being real smart with money.(any of you really smart with money guys need an apprentice?)

As far as INS. Through searching and a couple PM’s I received this company’s info.

http://mejames.com/

So there ya go, anyone else have a better idea, or opinion?

Jeff Knoll

 

[xxxxxxxxxxxxxJeff Knoll]

What about if you own a shop. Do you set up a seperate " " motorsports company. Seems to me it should be seperate in case of trouble but I have no clue. Sorry about the Hijack just need the same info as you for XRRA.

Consult an attorney, but I will give you my opinion.( Mine says don't race )

Liabilty can be spread out but it was put to me this way.

If you are driving and hit/hurt/kill someone you could still be personally liable no matter what you have set up.
In the case of you owning the car/team and someone else is driving and causes damage you could have protection with an LLC or corp.If a complaint is filed everyone gets named. Better your LLC then you.

Layers are what protect your assets. so in my opinion, if you set up your shop and race team under different companies you would have more protection.

You must balance out the costs of doing this based on your assets. We all know your not going to get rich racing cars so consider the additional costs of doing this as opposed to what you have to lose asset wise. There are other ways to protect things like your house. Each case is different and and each state is a little different. You can get a lot of info searching the net but I was taught a long time ago that Attorney and CPA fees are money well wasted.

I assume that a potential marketing sponsor would be impressed with a team that has this all worked out.

I also have found that most teams in motorsports have no protection what so ever. Few carry ins. Big teams in motorsports are often piggybacked on the team owners primary business ins. i.e. I spend a boat load of cash with you so you are going to ins my race team . I plan on getting fairly serious about racing over the next 5-10 years so I'm trying lay a good foundation now.

Not a hyjack in anyway good question and IMO a good topic for all racers to address. I feel most want to keep this personal information private.What happened to the guy that was trying to work out a group team ins rate?



EDIT: all of that is asuming worse case. You could always go to court and win.